Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a significant development, the United States and China have reached a preliminary trade agreement following two days of negotiations in Geneva, Switzerland. U.S. Treasury Secretary Scott Bessent described the talks as making “substantial progress,” while Chinese Vice Premier He Lifeng characterized them as “candid, in-depth, and constructive.”
Although specific details of the agreement have not been disclosed, both nations have agreed to establish a new “trade consultation mechanism” aimed at facilitating ongoing discussions and reducing trade tensions.
The negotiations come after a period of escalating tariffs, with the U.S. imposing duties as high as 145% on Chinese goods and China responding with tariffs up to 125% on U.S. products. These measures had significantly impacted global markets and supply chains.
Market reactions to the news have been positive. U.S. stock futures rose, and the S&P 500 index showed a strong recovery, regaining much of the ground lost after a 10% drop in early April. Similarly, China’s CSI 300 index experienced a 0.6% increase.
A joint statement detailing the agreement is expected to be released soon. Analysts suggest that the establishment of a formalized mechanism for continued talks and potential tariff reductions could serve as a blueprint for future trade negotiations, potentially influencing broader discussions across Asia.
The agreement marks a potential turning point in U.S.-China trade relations, which have been strained since the initiation of the trade war in 2018. Both countries appear to be seeking a path toward de-escalation and economic stability.
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