Trump’s Delegation Meets China as Stakes Rise for the Global Economy

Chinese officials underscores the escalating tensions between the United States and China, particularly in the context of an intensifying trade war. As Trump implements aggressive tariffs—reportedly reaching as high as 145% on Chinese goods—China has retaliated with its own tariffs, sometimes exceeding 125% . This tit-for-tat approach not only threatens bilateral relations but also poses significant risks to the stability of the global economy. Analysts warn that this "decoupling" could lead to heightened conflict and uncertainty in international markets .

Treasury Secretary Scott Bessent and U.S. trade representative Jamieson Greer will meet with their Chinese counterparts in Switzerland this weekend to discuss economic and trade matters, their offices announced Tuesday.

“We have shared interests,” Bessent said later on Fox News’ “Ingraham Angle.” The current tariff war “isn’t sustainable,” said Bessent, “especially on the Chinese side. And, you know, 145 percent [tariffs], 125 percent, is the equivalent of an embargo. We don’t want to decouple, what we want is fair trade.”

Bessent and Greer will meet with their Chinese counterparts on both Saturday and Sunday, the Treasury secretary said.

 Donald Trump.

The punishing tariffs have already damaged both economies. The US economy went into reverse in the first quarter, its first contraction in three years, as businesses stockpiled goods in anticipation of Trump’s “Liberation Day” tariffs, which began in the second quarter. Meanwhile, China’s factory activity contracted at its fastest pace in 16 months in April, and the government is expected to inject the economy with more stimulus measures.

Although the China-US trade standoff is by far the most aggressive, Trump has imposed large tariffs on most other countries around the world too: a 10% universal tariff on virtually all goods entering the United States, plus 25% tariffs on steel, aluminum, autos, auto parts and some goods from Mexico and Canada. So the world is watching the talks with anticipation.

OECD and World Bank have all predicted that Trump’s trade war would have disastrous effects on the global economy, slowing growth dramatically in some countries, while reigniting inflation. The United States is expected to be among the hardest-hit economies as other nations, including China, retaliate against it with higher tariffs. Many US economists and large banks predict the United States could enter a recession this year.

China's strategic response reflects its anticipation of prolonged economic challenges under Trump's administration. As articulated by Sun , China is adopting measures aimed at strengthening its domestic economy while enhancing ties with neighboring countries and developing nations. This proactive strategy may allow China to leverage perceived weaknesses in U.S. policies for long-term gains in global prominence. The lack of meaningful communication between Washington and Beijing exacerbates these tensions, raising concerns about potential miscalculations that could destabilize both economies further.

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Sarah H

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