Trump on Truth Social Says a very good meeting today with China

Trump posted on Truth Social: A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!

In a significant development, U.S. President Donald Trump has floated the idea of reducing U.S. trade tariffs against China to 80% as key peace talks between the two nations prepare to commence in Switzerland. The talks, scheduled for the weekend, are seen as a critical opportunity to ease the most punitive elements of the ongoing trade war [1].

The decision to lower tariffs will rest with Scott Bessent, the U.S. Treasury Secretary who will lead the U.S. delegation in Geneva. This proposal comes after several rounds of tariff hikes that have resulted in duties of 125% on U.S. imports to China and 145% on Chinese goods arriving in America, effectively creating a trade embargo [1].

The outcome of these talks is eagerly awaited, as both economies are feeling the strain. The U.S. economy contracted during the first three months of the year due to fears of a trade war, while China has seen factory orders tumbling, prompting its central bank to cut interest rates and reduce bank reserve requirements to bolster economic activity [1].

President Trump's announcement has been broadly welcomed across financial markets. The dollar and global stocks rose on Friday in anticipation of a cooling in trade hostilities between the world's two largest economies. However, a 80% tariff remains highly restrictive, and the effects of the trade war are already being felt in both economies [1].

Trump's remarks also come as China is eager to negotiate a trade deal with the U.S. According to the president, China "very much wants to make a deal," and the talks in Switzerland are expected to be constructive [2]. The Chinese delegation is led by Vice Premier He Lifeng, known for his effective negotiating skills, while the U.S. delegation is led by Treasury Secretary Bessent [2].

The potential tariff reduction and the ongoing negotiations have sparked optimism in financial markets. However, the long-term impact remains uncertain, and investors are advised to monitor the developments closely. The interplay between U.S. politics and global trade dynamics continues to influence market sentiment, and any significant changes in policy could have far-reaching effects [3].

References:
[1] https://news.sky.com/story/trade-war-trump-floats-china-tariff-cut-to-80-ahead-of-talks-13364410
[2] https://www.foxnews.com/politics/trump-signals-china-very-much-interested-securing-trade-deal-ahead-switzerland-negotiations
[3] https://blockchain.news/flashnews/trump-s-truth-social-xrp-sol-ada-crypto-reserve-announcement-linked-to-lobbyist-with-crypto-ties-market-impact-analysis