By Sama Marwan,
Top economic officials from the United States and China are set to meet in Geneva on Saturday for critical negotiations that could shape the future of the global economy, which has been heavily impacted by the ongoing trade war launched by former U.S. President Donald Trump, according to The New York Times.
The paper described the talks, scheduled to continue into Sunday, as the first direct engagement since Trump raised tariffs on Chinese imports to 145%, prompting Beijing to retaliate with 125% tariffs on American goods. This tit-for-tat escalation has led to a dramatic decline in trade between the world’s two largest economies and increased the risk of a global economic slowdown.
While the stakes are high, expectations for a major breakthrough — such as significant tariff reductions — remain modest. It took weeks of negotiation just to agree on restarting talks, and many analysts believe this round will mostly serve to clarify each side’s priorities and discuss how to proceed.
Still, the resumption of dialogue between Beijing and Washington has raised hopes that tensions might ease and tariffs could eventually be lowered. The impact of these tariffs is already rippling through the global economy, redirecting supply chains, and raising costs for both companies and consumers.
Economists and investors will be watching the discussions closely, fearing that the prolonged U.S.-China economic standoff could lead to slower global growth and rising prices. Companies — especially those reliant on Chinese imports — remain on high alert, scrambling to adapt to the new tariffs and the uncertainty surrounding their long-term viability.
Eswar Prasad, former head of the IMF’s China division, commented:
“The U.S. and China both have strong economic and financial incentives to de-escalate their trade hostilities, but a lasting breakthrough in relations does not appear imminent.”
