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US and China begin 2nd day of tariff talks. - AP News

AinvestSunday, May 11, 2025 5:55 am ET
2min read

US and China begin 2nd day of tariff talks. - AP News

US and Chinese delegations are set to resume talks over tariffs on Sunday, following a day of prolonged negotiations that ended Saturday without immediate signs of progress. The talks, which took place in Geneva, Switzerland, aim to de-escalate trade tensions between the world's two largest economies, which have been roiled by the U.S.-China standoff.

The first day of talks, which lasted over 10 hours, saw U.S. Secretary of Treasury Scott Bessent and Chinese Vice Premier He Lifeng engage in sensitive discussions. While neither side made public comments on the way out, prospects for a major breakthrough appear dim. However, there is hope that the two countries will scale back the massive tariffs they have imposed on each other's goods, a move that would relieve global financial markets and companies on both sides of the Pacific Ocean that depend on U.S.-China trade.

U.S. President Donald Trump, who has been aggressively using tariffs as his favorite economic weapon, raised U.S. tariffs on China to a combined 145% last month. China retaliated with a 125% levy, essentially amounting to a boycott of each other's products and disrupting trade that topped $660 billion last year. Even before the talks began, Trump suggested that the U.S. could lower its tariffs on China, stating that an 80% tariff seems right.

The talks come at a time when the U.S. and China are also grappling with other trade disputes, including issues related to China's tech policy and the flow of synthetic opioids like fentanyl into the United States. The Phase One agreement reached in 2020, which was meant to address these issues, has not been fully implemented due to disruptions caused by COVID-19.

The automotive sector is also feeling the impact of these tariffs. Ford Motor Co. and General Motors (GM) are both navigating the financial challenges posed by new tariffs imposed by the U.S. government. Ford estimates an additional $2.5 billion in expenses by 2025, while GM anticipates facing even greater financial pressures, estimating an increase in costs between $4 billion and $5 billion. Analysts warn of a potential decline in U.S. auto sales by over 1 million vehicles annually if the tariffs remain in place.

Chinese exports to the U.S. plunged in April, with shipments of goods from China to the U.S. dropping 21% compared to the same period one year earlier. This decrease is attributed to the steep tariffs imposed by the U.S. on Chinese goods. In contrast, Chinese exports to Southeast Asian countries surged by the same amount, demonstrating how the tariffs are upending trade patterns.

As the talks resume, both sides are under pressure to find a solution that can stabilize world markets and ease the burden on businesses and consumers. The outcome of these negotiations will have significant implications for the global economy and the future of U.S.-China trade relations.

References:
[1] https://www.cnbc.com/2025/05/10/us-china-tariff-talks-to-continue-sunday-official-tells-the-ap.html
[2] https://tokenist.com/ford-faces-1-billion-tariff-challenge-raises-prices-on-mexican-models/
[3] https://www.cbsnews.com/news/us-tariffs-chinese-exports-plunge/

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ObedientCat
05/11

Why is China even talking to crazy people.  

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Former_Designer3293
05/11
@ObedientCat China's talking cuz trade affects everyone.
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Virtual_Information3
05/11
US and China haggling over tariffs is like watching $TSLA volatility – keep hands and feet inside the market at all times.
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MacawGiganticus
05/11
@Virtual_Information3 Any other stocks giving you whiplash?
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Region-Formal
05/11
@Virtual_Information3 True, markets can be wild.
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WorkingCareful7935
05/11
Trade war drama, my $AAPL calls paying off.
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Miguel_Legacy
05/11
@WorkingCareful7935 How long you holding $AAPL? Any specific target in mind?
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CopyGrand7281
05/11
@WorkingCareful7935 I had $AAPL, sold early. Regretting now, FOMO hitting hard.
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Jera_Value
05/11
Holding some $TSLA, worried about China relations. Diversifying in case this trade drama flips again.
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Arturs727
05/11
Beijing backing off on 'em, huh? Tariffs going down could pump up $AAPL. Maybe time to load up?
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smarglebloppitydo
05/11
@Arturs727 How long you planning to hold $AAPL if tariffs drop? Any other stocks on your radar?
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destroyman26
05/11
China playing hardball, tariffs biting. What's next?
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thelastsubject123
05/11
Market loves drama, right? US-China dance impacts more than just pockets. It's a global circus. 🎪
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FaatmanSlim
05/11
Trump's team playing hardball again. China's patience tested. What's the endgame here? 🤔
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TheLastMemeLeft
05/11
US-China talks resuming. Gotta love the rollercoaster of trade wars. 🚀🌍 Who's got skin in the game?
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theArcticChiller
05/11
@TheLastMemeLeft Rollercoaster rides are fun, but can we get a MOONSHOT on those tariffs? 🚀💸
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Historyissuper
05/11
US-China talks stalemate, soybean farmers sweating
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Acceptable-Try1292
05/11
OMG!The AMZN stock triggered a trading signal, resulting in substantial gains for me.
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maximalsimplicity
05/11
@Acceptable-Try1292 What’s your avg buy-in for AMZN? Curious how long you held it.
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MirthandMystery
05/11
Rollercoaster markets, anyone else buying the dips?
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Straight_Turnip7056
05/11
@MirthandMystery Holding long or short? Any stocks catching your eye?
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mrdebro44
05/11
@MirthandMystery I'm all in on holding, picked up some tech ETFs last month. Love the volatility, it's like a discount.
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