TITLE: UNDER THE HIGH TARIFF OF 145%, CHINA AND THE UNITED STATES SUDDENLY REACHED "SUBSTANTIAL PROGRESS"

A quick look at the tariff negotiations in Geneva:

• The United States and China have begun talks in Geneva.
• U.S. Treasury Secretary Scott Becerra and U.S Trade Representative Greer met with Vice Premier He Lifeng of the State Department.
• Tariffs of up to 145 per cent threaten to freeze trade.
• Trump has hinted at reducing U.S. tariffs to 80 percent.
• The meeting was reportedly held in private at the Swiss ambassador's residence.
• There is little hope of a deal, but there is optimism for de-escalation.
• The talks also touched on issues such as fentanyl, technology theft and subsidies.
• Trump temporarily suspended higher tariffs on Swiss goods.
• Switzerland called for calm and warned that its economy would suffer.
• World markets are watching closely for any signs of progress.

This weekend, the U.S.-China trade team held two days of intensive talks in Geneva, Switzerland, and the results were surprisingly positive.

U.S. Treasury Secretary Benson told reporters after the meeting that "substantial progress" had been made in the U.S-China talks, while Chinese Vice Premier He Lifeng said in a rare speech that the two sides had "reached important consensus" and would issue a joint statement on May 12 morning.​​The backdrop to the talks was not easy: the United States imposed tariffs of as much as 145 percent on Chinese goods, and the Chinese countered with 125 percent. It can be said that the two sides have returned to the negotiating table in a situation of heightened tensions.

No.1

The US side said:

"It was productive, the goal was to de-escalate tensions"

Mr. Vicente stressed that the negotiations were based on the principles of "cooperation, common interests and mutual respect." He revealed that the results had been reported to President Trump and that the details would be announced on the 12th.

U.S. Trade Representative Jeremy Greer said the consensus came "faster than expected" over the two days, suggesting the differences between the two sides may be less significant. The director of the White House National Economic Council also added that China is "very eager" to restore normal trade relations. The US has even hinted that it could reduce tariffs on China to 80 per cent if China makes substantial concessions.

No.2

China rarely sends positive signals

He said the talks were "confronted, in-depth and constructive" and also proposed for the first time the establishment of a "trade consultation mechanism," meaning that this is not a one-off dialogue but may open up regular communication. The Chinese statement also said: "We will finalize the details as soon as possible and issue a joint statement."

No.3

What does this talk mean?

While no specific terms have been published yet, several things have become very clear:​ Both sides have the will to de-escalate the situation. From US hints of lower tariffs to China's rare language of "substantial progress," it is clear that the dialogue is not over.​High tariffs have "pained" both countries. Minister Lutnik said bluntly that tariffs of 125 per cent and 145 per cent have essentially shut down trade, which is not good for anyone.​ Market sentiment could be getting a boost. Even tariff adjustments in some areas would be enough to send a positive signal to the world.

This is not a final negotiation, but it could be a "reset button." Against a backdrop of rising global economic uncertainty, the goodwill displayed by the two largest economies, the United States and China, is a rare positive sign. Of course, it all depends on the details of the joint statement to be released tomorrow (May 12). But at least, now we can breathe a little bit of relief.