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Stocks rallied Monday after Chinese and US officials made “substantial progress” at trade talks in Geneva and slashed their tit-for-tat tariffs for 90 days, fuelling hopes the two sides will pull back from a standoff that has rattled global markets.Investors have been on a rollercoaster ride since Donald Trump unveiled eye-watering tolls on trading partners on April 2, with the heftiest saved for Beijing, raising concerns of a trade war between the economic superpowers.The US president eventually hiked the measures against China to 145 percent, which were met with retaliatory rates of 125 percent.However, there have been signs of an easing of tensions and after two days of highly anticipated negotiations in Geneva, the two countries hailed progress towards ending a crisis that fuelled fears of a global recession.On Monday the two said they would slash their levies to cool tensions and give officials time to resolve their differences.In a joint statement, the US side said it would reduce tolls to 30 percent while Chinese tariffs on American goods would be cut to 10 percent.That came after US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met Chinese Vice Premier He Lifeng and international trade representative Li Chenggang in the first known talks since Trump’s “Liberation Day” announcement.”We’ve made substantial progress between the United States and China in the very important trade talks,” Bessent told reporters, while the White House has hailed what it called a new “trade deal”.China on Monday also hailed “substantial progress”, with the commerce ministry saying the move “is in the interest of the two countries and the common interest of the world”.Tai Hui, Asia-Pacific chief market strategist at JP Morgan Asset Management, said: “The magnitude of this tariff reduction is larger than expected. This reflects both sides recognising the economic reality that tariffs will hit global growth and negotiation is a better option going forward.”The 90-day period may not be sufficient for the two sides to reach a detailed agreement, but it keeps the pressure on the negotiation process.”Hong Kong led Asian markets higher, jumping three percent, while Shanghai — which closed before the tariff cuts were announced — also enjoyed healthy buying interest.Tokyo, Sydney, Seoul, Taipei and Wellington were all in the green.Paris and Frankfurt rose more than one percent, while London was also higher.US futures surged more than one percent.Mumbai jumped more than three percent after India and Pakistan agreed a ceasefire at the weekend following four days of missile, drone and artillery attacks between the two countries which killed at least 60 people and sent thousands fleeing.Pakistan’s stock exchange rocketed more than nine percent.Oil prices, meanwhile, jumped more than two percent on speculation that the easing of China-US tensions would help demand.The dollar also advanced one percent against the euro and yen.Gold, which rallied last month over a rush to safe havens, extended losses.”The initial reaction to the weekend US-China talks (is) predictably encouraging,” said Chris Weston at Pepperstone. However, Karsten Junius at Bank J. Safra Sarasin was cautious.”We expect financial markets to remain volatile over the coming months, as they have almost fully priced out negative economic surprises and could once again be disrupted by more serious obstacles in trade negotiations,” he said in a commentary.”In all likelihood, things may still get worse before they get better.”Investors are also awaiting the release this week of data on US inflation and retail sales, which will provide a fresh snapshot of the world’s biggest economy since the tariffs were first unveiled.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.4 percent at 37,644.26 (close)Hong Kong – Hang Seng Index: UP 3.0 percent at 23,549.46 (close)Shanghai – Composite: UP 0.8 percent at 3,369.24 (close)London – FTSE 100: UP 0.5 percent at 8,593.36 Euro/dollar: DOWN at $1.1102 from $1.1257 on FridayPound/dollar: DOWN at $1.3166 from $1.3308Dollar/yen: UP at 147.99 yen from 145.31 yenEuro/pound: DOWN at 84.31 pence from 84.57 penceWest Texas Intermediate: UP 2.6 percent at $62.60 per barrelBrent North Sea Crude: UP 2.5 percent at $66.51 per barrelNew York – Dow: DOWN 0.3 percent at 41,249.38 (close)

Business is booming at Japanese discount chain Don Quijote, which sells everything from nostril-hair wax to compact gadgets and colourful party costumes, thanks to its cult status among tourists but also inflation at home.At a large Don Quijote store in Tokyo’s bustling Shibuya district, hundreds of tourists rush to fill their baskets with snacks and souvenirs from its heaving narrow aisles.”I was pretty overwhelmed at first, just because there’s so many options, everything’s in a different language,” 27-year-old Garett Bryan from the United States told AFP.But “I feel like I bought a lot and it was only like $70” including “a coffee cup for my mom, a fan, some Godzilla chopsticks, just a couple toys”.The chaotic cut-price shops nicknamed “Donki” were founded in the 1980s by Takao Yasuda, who named them after his business inspiration: the idealistic protagonist of the classic Spanish novel, “Don Quixote”.He wanted to shake up Japan’s staid retail industry with new tactics including late-night opening hours as well as more varied prices and product lines.Now a record influx of visitors to Japan, fuelled by a weak yen, is boosting sales nationwide.Revenues at Don Quijote in Japan are “around 1.7 higher than before the pandemic”, said Motoki Hata, a manager at the retailer.Last year its parent firm Pan Pacific International Holdings (PPIH) saw revenue rise around 12 percent year-on-year for its discount chains including Donki, while tax-free sales beat internal forecasts.Shopping at Don Quijote is like a “treasure hunt” — a fun experience that foreign visitors love, Hata told AFP.”Customers end up buying something different than what they came in for,” he said beside rows of cherry-blossom flavour KitKats, a popular exclusive product.- ‘Jungle’-like -Don Quijote and its sister brands have 501 stores in Japan, where 24 new ones opened during the past financial year.PPIH Group also runs 110 stores abroad, in the United States and across Asia from Taiwan to Thailand.California is one place being targeted by the company for expansion, according to analyst Paul Kraft, founder of Tokyo-based consultancy firm JapanIQ.But that plan could be complicated by US President Donald Trump’s trade tariffs — including levies of 24 percent on Japan, which have been paused until July.Even so, “I wouldn’t bet against them, even in this entire high-tariff environment”, Kraft said.”Nobody adjusts as fast as Don Quijote in retail in Japan — even faster than convenience stores, because they give so much autonomy to their stores.”They are also “some of the smartest and most aggressive buyers that I’ve seen”, with consistently “the best selection of almost anything”.However, in Japan at least, the shopping experience is “cramped, dark, you know, the buildings might be old” with products seemingly “hanging from everywhere”.Don Quijote’s omnipresent Santa-hat wearing penguin mascot Donpen and its “Don Don Donki” jingle on repeat just adds to the “jungle”-like experience.”It is just almost an assault on the senses,” Kraft said.- Inflation hits -Still, Don Quijote “has grown to be an extremely important retailer in Japan”, Kraft said — especially as rising inflation ramps up demand for cheaper products.The country’s core inflation rate accelerated to 3.2 percent in March, with consumers feeling the pinch on electricity bills as well as kitchen staples like cabbage and rice.Household consumption fell 1.1 percent in 2024, with some people making the trip to Don Quijote to save.”It’s less expensive than other shops, and they also have famous brands,” said a Tokyo resident who shops at the store twice a week and gave her surname as Kuroki.Shoji Raku, 20, told AFP she shops at Donki for “shampoo, electronics and everything that you don’t find elsewhere”.There is even usually a cordoned off adults-only section at Donki stores selling various sex toys.Tourist sales remain a key focus for the chain, which plans to open two new stores targeted at visitors in Japan next year, centred on duty-free products.But one Donki customer, Bruno Bosi from Brazil, said shoppers should tread with caution.”It is a store for you to buy as much as you want — but I think you need to ask yourself if you need it,” he said.

The US and China will Monday give details of “substantial progress” touted by Washington on trade talks aimed at ending a devastating tariff war launched by US President Donald Trump that has wiped billions off equities and brought chaos to international commerce.US Treasury Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and international trade representative Li Chenggang for closed-door talks in Geneva on Saturday and Sunday.It was the first time senior officials from the world’s two largest economies have met face-to-face to talk trade since Trump imposed steep new levies on China totalling 145 percent, with cumulative US duties on some Chinese goods reaching a staggering 245 percent.In retaliation, China has put 125 percent tariffs on US goods.The trade spat between Washington and Beijing has rocked financial markets and raised fears of a global economic slowdown and an inflationary spike in the United States.Both sides sounded an optimistic note after the talks ended on Sunday, without providing many specifics, with the White House calling it a new “trade deal”.”We’ve made substantial progress between the United States and China in the very important trade talks,” Bessent told reporters in Geneva after the second day of discussions.”The talks were productive,” he said, taking no questions but promising a “complete briefing” Monday on the outcome.Greer also said meetings had been “very constructive” and appeared to point to a deal. “It is important to understand how quickly we were able to come to an agreement which reflects that perhaps the differences were not so large as may be thought,” he said.The Chinese delegation also pledged to release a joint communique on Monday.China’s He told reporters that the atmosphere in the meetings had been “candid, in-depth and constructive,” calling them “an important first step.”The two sides have agreed to set up a joint mechanism focused on “regular and irregular communications related to trade and commercial issues,” Li told reporters at the briefing.Markets in Asia rallied on Monday morning as investors welcomed news that weeks of trade turmoil could be finally coming to an end.- Devil in the details -“These discussions mark a significant step forward and, we hope, bode well for the future,” World Trade Organization chief Ngozi Okonjo-Iweala said in a statement shortly after her own meeting with He.”Amid current global tensions, this progress is important not only for the US and China but also for the rest of the world, including the most vulnerable economies,” she added.Ahead of the meeting at the discreet villa residence of Switzerland’s ambassador to the United Nations in Geneva, Trump signalled he might lower the tariffs, suggesting on social media that an “80% Tariff on China seems right!”.However, White House Press Secretary Karoline Leavitt later clarified that the United States would not lower tariffs unilaterally. China would also need to make concessions, she said.”It’s definitely encouraging,” Asia Society Policy Institute (ASPI) vice president Wendy Cutler told AFP on Sunday after the talks had concluded.”The two sides spent over 15 hours in discussions,” she said. “That’s a long time for two countries to be meeting, and I view that as positive.”But, she added, “the devil will be in the details.”- ‘The beginning’ -The Geneva meeting comes days after Trump unveiled a trade agreement with Britain, the first with any country since he unleashed his blitz of global tariffs.The five-page, non-binding deal confirmed to nervous investors that Washington is willing to negotiate sector-specific relief from recent duties. But Trump maintained a 10 percent levy on most British goods, and threatened to keep it in place as a baseline rate for most other countries.”What we get in these talks is a beginning of the narrative, the beginning of a dialogue,” Citigroup global chief economist Nathan Sheets said in an interview over the weekend, as the US-China talks were under way. “This is just the beginning of a process, getting the ball rolling.”burs-oho/hmn

Asian stocks rallied Monday after top Chinese and US officials held “substantial” trade talks at the weekend, fuelling hopes the two sides will dial down a tariff standoff that has rattled global markets and fuelled recession fears.Investors have been on a rollercoaster ride since Donald Trump unveiled eye-watering tolls on trading partners on April 2, with the heftiest saved for Beijing, raising concerns of a trade war between the economic superpowers.The US president eventually hiked the measures against China to 145 percent, which were met with retaliatory rates of 125 percent.However, there have been signs of an easing of tensions and after two days of highly anticipated negotiations in Geneva, the two countries hailed progress towards ending the crisis.US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met Chinese Vice Premier He Lifeng and international trade representative Li Chenggang in the first known talks since Trump’s “Liberation Day” announcement.”We’ve made substantial progress between the United States and China in the very important trade talks,” Bessent told reporters, while the White House hailed what it called a new “trade deal”, without providing any additional details.China’s He said the atmosphere in the talks was “candid, in-depth and constructive”, adding that they were “an important first step”.Greer added that “differences were not as large as maybe thought”. The two sides said they would provide details Monday.World Trade Organization chief Ngozi Okonjo-Iweala said after her own meeting with He that the talks with the United States “mark a significant step forward and, we hope, bode well for the future”.Before the discussions, Trump had indicated he might lower his tariffs, writing on social media that an “80% Tariff on China seems right!”Asian markets started the week on a strong note, with Hong Kong up more than one percent, while Shanghai also enjoyed healthy buying interest.Sydney, Seoul, Taipei and Wellington were all in the green, with Tokyo flat.US futures surged more than one percent.The dollar also rose, as did oil prices owing to speculation easing tensions would help demand. Gold, which rallied last month over a rush to safe havens, extended losses.”The initial reaction to the weekend US-China talks (is) predictably encouraging,” said Chris Weston at Pepperstone. “While this was always the likely outcome, it does represent an important step forward in the dialogue process and is obviously constructive, and we now look for the necessary substance and whether the two countries will take the tangible step towards the speculated US import tariff rates of 60 percent.”However, he warned traders “will have a low tolerance for inaction — market players want the tariff rates taken down to 60 percent swiftly and in one action”. Karsten Junius at Bank J. Safra Sarasin was also cautious.”We expect financial markets to remain volatile over the coming months, as they have almost fully priced out negative economic surprises and could once again be disrupted by more serious obstacles in trade negotiations,” he said in a commentary.”In all likelihood, things may still get worse before they get better.”Investors are also awaiting the release this week of data on US inflation and retail sales, which will provide a fresh snapshot of the world’s biggest economy since the tariffs were unveiled.- Key figures at around 0300 GMT -Tokyo – Nikkei 225: FLAT at 37,519.80 (break)Hong Kong – Hang Seng Index: UP 1.3 percent at 23,171.53Shanghai – Composite: UP 0.6 percent at 3,363.13Euro/dollar: DOWN at $1.1227 from $1.1257 on FridayPound/dollar: DOWN at $1.3279 from $1.3308Dollar/yen: UP at 146.13 yen from 145.31 yenEuro/pound: DOWN at 84.55 pence from 84.57 penceWest Texas Intermediate: UP 0.1 percent at $61.06 per barrel Brent North Sea Crude: FLAT at $63.90 per barrelNew York – Dow: DOWN 0.3 percent at 41,249.38 (close)London – FTSE 100: UP 0.3 percent at 8,554.80 (close) 

Chinese EV battery giant CATL aims to raise $4 billion in its Hong Kong listing scheduled for May 20, said a statement filed to the bourse Monday, making it the largest IPO expected in the city so far this year.A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide, working with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.The company is already listed in Shenzhen, and its plan for a secondary listing in Hong Kong was announced in a December filing with the stock exchange.According to a prospectus filed Monday, CATL will offer approximately 117.9 million units priced at up to HK$263 per share ($33.8) for total expected proceeds of HK$31.01 billion.The listing is set to take place next Tuesday (May 20).Cornerstone investors, including Sinopec and Kuwait Investment Authority, agreed to buy shares worth HK$2.62 billion, the prospectus shows.Founded in 2011 in the eastern Chinese city of Ningde, Contemporary Amperex Technology Co., Limited (CATL) was initially propelled to success by rapid growth in the domestic market.But the world’s largest EV market has more recently begun to show signs of flagging sales amid a broader slowdown in consumption.The trends have fuelled a fierce price war in China’s expansive EV sector, putting smaller firms under huge pressure to compete while remaining financially viable.But CATL continues to post solid performances, with its net profit jumping 32.9 percent in the first quarter. Funds raised from a secondary listing could be used to accelerate CATL’s overseas expansion, particularly in Europe.The battery giant is building its second factory on the continent in Hungary after launching its first in Germany in January 2023.In December, CATL announced that it would work with automotive giant Stellantis on a $4.3 billion factory to make EV batteries in Spain, with production slated to begin by the end of 2026.- ‘Military-linked company’ – Earlier analysts said CATL’s float could be a blockbuster initial public offering that could boost Hong Kong’s fortunes as a listing hub.Hong Kong’s stock exchange is eager for the return of big-name Chinese listings in hopes of regaining its crown as the world’s top IPO venue.The Chinese finance hub saw a steady decline in new offerings since Beijing’s regulatory crackdown starting in 2020 led some Chinese mega-companies to put their plans on hold.In a list issued in January by the US Defense Department, CATL was designated as a “Chinese military company”. The United States House Select Committee on the Chinese Communist Party highlighted this inclusion in letters to two American banks in April, urging them to withdraw from the IPO deal with the “Chinese military-linked company”.But the two American banks — JPMorgan and Bank of America — are still on the deal.Beijing has denounced the list as “suppression”, while CATL denied engaging “in any military related activities”.According to Bloomberg, CATL plans to make the deal as a “Reg S” offering, which doesn’t allow sales to US onshore investors, limiting the company’s exposure to legal risks in the United States.

Millions of Filipinos will vote Monday in a mid-term election widely seen as a referendum on the explosive feud between President Ferdinand Marcos and impeached Vice President Sara Duterte.Workers in the capital Manila were busily setting up polling stations Sunday for a race that will decide more than 18,000 posts, from seats in the House of Representatives to hotly contested municipal offices. It is the Senate race, however, that carries potentially major implications for 2028’s presidential election.The 12 senators chosen Monday will form half the jury in a Duterte impeachment trial — tentatively set for July — that could see her permanently barred from public office. Duterte’s long-simmering feud with former ally Marcos exploded in February when she was impeached by the House for alleged “high crimes” including corruption and an assassination plot against the president.Barely a month later, her father, former president Rodrigo Duterte, was arrested and flown to the International Criminal Court (ICC) the same day to face a charge of crimes against humanity over his deadly anti-drugs campaign.Sara Duterte will need nine votes in the 24-seat Senate to preserve any hope of a future presidential run. Heading into Monday, seven of the candidates polling in the top 12 were endorsed by Marcos while four were aligned with his vice president.Two, including the president’s independent-minded sister Imee Marcos, were “adopted” as honorary members of the Duterte family’s PDP-Laban party on Saturday.The move to add Marcos and television personality Camille Villar to the party’s slate was intended to add “more allies to protect the Vice President against impeachment”, according to the resolution.At her final rally in Manila on Thursday, Duterte invoked the spectre of “massive” electoral fraud and once again referred to her father’s transfer to the ICC as a “kidnapping”.Despite his detention at The Hague, the elder Duterte remains on the ballot in his family’s southern stronghold of Davao city, where he is seeking to retake his former job as mayor. At least one local poll is predicting he will win comfortably.- Election violence -National police in the archipelago nation have been on alert for more than a week, and around 163,000 officers have been deployed to secure polling stations, escort election officials and guard checkpoints.Thousands more personnel from the military, fire departments and other agencies have been mobilised to keep the peace in a country where battles over hotly contested provincial posts are known to erupt in violence.A city council hopeful, a polling officer and a village chief are among the at least 16 people police say have been killed in attacks in the run-up to Monday’s election.On Saturday, a candidate for municipal councillor was one of two men in an “armed group” killed in a shootout with police and the military in southern Mindanao island’s autonomous Muslim region, a notorious hotbed of election-related violence.Further north, a group of men were arrested the same day at the Cebu airport while transporting 441 million pesos (nearly $8 million) in cash, a crime under election rules aimed at preventing the exchange of bribes for votes.Both cases were still under investigation.

The United States and China on Sunday said progress had been made after a weekend of talks aimed at de-escalating trade tensions sparked by President Donald Trump’s aggressive tariff rollout.The increasingly ugly trade spat between Washington and Beijing has rocked financial markets and raised fears of a global economic slowdown, and an inflationary spike in the United States.”We’ve made substantial progress between the United States and China in the very important trade talks,” US Treasury Secretary Scott Bessent told reporters in Geneva after the second day of discussions.”The talks were productive,” he said, taking no questions but promising a “complete briefing” Monday on the outcome.In a statement Sunday, which did not provide any additional details, the White House hailed what it called a new “trade deal” with China.China’s Vice Premier He Lifeng told reporters the meetings had achieved “substantial progress,” echoing Bessent’s remarks, and described the atmosphere as “candid, in-depth and constructive.” “This is an important first step,” He said, adding there were plans for a joint communique to be published Monday.The two sides have agreed to set up a joint mechanism focused on “regular and irregular communications related to trade and commercial issues,” China’s international trade representative Li Chenggang said at the same briefing. Asked if the communique would arrive before financial markets opened, Li replied: “If the dishes are delicious, timing is not a matter.” “Whenever released, it is going to be big, good news,” he said. The meetings marked the first time senior officials from the world’s two largest economies have met face-to-face over trade since Trump slapped steep new levies on China totalling 145 percent, with cumulative US duties on some Chinese goods reaching a staggering 245 percent.In retaliation, China put 125 percent tariffs on US goods.”These discussions mark a significant step forward and, we hope, bode well for the future,” World Trade Organization chief Ngozi Okonjo-Iweala said in a statement shortly after her own meeting with He Lifeng.”Amid current global tensions, this progress is important not only for the US and China but also for the rest of the world, including the most vulnerable economies,” she added. – Devil in the details -“It’s definitely encouraging,” Asia Society Policy Institute (ASPI) vice president Wendy Cutler told AFP after the talks had concluded.”The two sides spent over 15 hours in discussions,” she said. “That’s a long time for two countries to be meeting, and I view that as positive.”Ahead of the meetings at the discrete villa residence of Switzerland’s ambassador to the United Nations in Geneva, Trump signalled he might lower the tariffs, suggesting on social media that an “80% Tariff on China seems right!”However, White House Press Secretary Karoline Leavitt later clarified that the United States would not lower tariffs unilaterally. China would also need to make concessions, she said.The fact the talks are even happening “is good news for business, and for the financial markets”, Gary Hufbauer, a senior non-resident fellow at the Peterson Institute for International Economics, said in an interview while the talks were ongoing.But Hufbauer cautioned he was “very sceptical that there will be any return to something like normal US-China trade relations”. Even a tariff rate of 70-80 percent would still potentially halve bilateral trade, he said.”The devil will be in the details,” said Cutler from ASPI. “Without the details, it’s hard to assess whether the meeting was successful or not.” – ‘GREAT PROGRESS!!’ – China’s vice premier went into the discussions buoyed by Friday’s news that China’s exports rose last month despite the trade war.The unexpected development was attributed by experts to a re-routing of trade to Southeast Asia to mitigate US tariffs.The Geneva meeting comes after Trump unveiled a trade agreement with Britain, the first with any country since he unleashed his blitz of global tariffs.The five-page, non-binding deal confirmed to nervous investors that Washington is willing to negotiate sector-specific relief from recent duties. But Trump maintained a 10 percent baseline levy on most British goods.In a Truth Social post Saturday, Trump said the talks had made “GREAT PROGRESS!!””We want to see, for the good of both China and the U.S., an opening up of China to American business,” he added.

Washington expressed optimism at the end of a weekend of trade talks with China aimed to de-escalate trade tensions sparked by President Donald Trump’s aggressive tariff rollout.”I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks,” US Treasury Secretary Scott Bessent told reporters in Geneva.”The talks were productive,” he said, taking no questions from the media, but promising a “complete briefing” on the outcome of the talks on Monday.Trade Representative Jamieson Greer, who also took part in the two days of closed-door talks with Chinese Vice Premier He Lifeng, sais that the differences between the sides were “not so large as maybe thought”.After the first day of negotiations, Trump had posted on Truth Social that the discussions had been “very good”, describing them as “a total reset negotiated in a friendly, but constructive, manner”.Beijing had yet to comment Sunday, but on Saturday Chinese state news agency Xinhua described the talks as “an important step in promoting the resolution of the issue”.The Chinese delegation was expected to speak to the media Sunday evening.The meetings marked the first time senior officials from the world’s two largest economies have met face-to-face to tackle the topic of trade since Trump slapped steep new levies on China last month, sparking a robust retaliation from Beijing. – Tariffs ‘lose-lose’ -“The talks reflect that the current state of the trade relations with these extremely high tariffs is ultimately in the interests of neither the United States nor China,”, Citigroup global chief economist Nathan Sheets told AFP. He called the tariffs a “lose-lose proposition”.The tariffs imposed by Trump on the Asian manufacturing giant since the start of the year currently total 145 percent, with cumulative US duties on some Chinese goods reaching a staggering 245 percent.In retaliation, China put 125-percent tariffs on US goods.Ahead of the meeting at the discrete villa residence of the Swiss ambassador to the United Nations in Geneva, Trump signalled he might lower the tariffs, suggesting on social media that an “80% Tariff on China seems right!”However, his press secretary Karoline Leavitt later clarified that the United States would not lower tariffs unilaterally. China would also need to make concessions, she said.Going into the meeting, both sides played down expectations of a major change in trade relations.Bessent underlined a focus on “de-escalation” and not a “big trade deal”, while Beijing insisted that the United States had to ease tariffs first.The fact the talks are even happening “is good news for business, and for the financial markets”, said Gary Hufbauer, a senior non-resident fellow at the Peterson Institute for International Economics (PIIE).But Hufbauer cautioned he was “very sceptical that there will be any return to something like normal US-China trade relations”. Even a tariff rate of 70 to 80 percent would still potentially halve bilateral trade, he said.- China ‘better equipped’ – China’s vice premier went into the discussions buoyed by Friday’s news that China’s exports rose last month despite the trade war.The unexpected development was attributed by experts to a re-routing of trade to Southeast Asia to mitigate US tariffs.Among some of the more moderate Trump officials, such as Bessent and US Commerce Secretary Howard Lutnick, “there’s a realisation that China is better equipped to deal with this trade war than the US,” said Hufbauer.The Geneva meeting comes after Trump unveiled a trade agreement with Britain, the first deal with any country since he unleashed his blitz of global tariffs.The five-page, non-binding deal confirmed to nervous investors that the United States is willing to negotiate sector-specific relief from recent duties. But he maintained a 10-percent baseline levy on most British goods.Following the US-UK trade announcement, analysts have voiced pessimism about the likelihood negotiations will lead to any significant changes in the US-China trade relationship.”It’s nice that they’re talking. But my expectations for the actual outcomes of this first round of talks is pretty limited,” Sheets from Citigroup said.In his Truth Social post, Trump said the talks had made “GREAT PROGRESS!!””We want to see, for the good of both China and the U.S., an opening up of China to American business,” he added.

Washington expressed optimism as talks with top Chinese officials continued for a second day Sunday in a bid to de-escalate trade tensions sparked by President Donald Trump’s aggressive tariff rollout.As the two days of high-level negotiations in Geneva neared an end, US Commerce Secretary Howard Lutnick told CNN Sunday the administration was “optimistic that things will work out well”.That comment came after Trump posted on Truth Social following the first day of negotiations that Saturday’s discussions had been “very good”, deeming them “a total reset negotiated in a friendly, but constructive, manner”.Beijing had yet to comment Sunday, but on Saturday Chinese state news agency Xinhua described the talks as “an important step in promoting the resolution of the issue”.The closed-door meetings between US Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng are taking place at the residence of the Swiss ambassador to the United Nations in Geneva.After taking a two-hour lunch break, the delegations returned to the discrete villa with sky-blue shutters on the left bank of Lake Geneva at around 3:30 pm (1330 GMT), according to an AFP journalist on site.Lutnick told CNN the teams were hard at work on negotiations that are “really important” for both sides, but did not provide further detail on the contents of the talks.- Tariffs ‘lose-lose’ -The discussions are the first time senior officials from the world’s two largest economies have met face-to-face to tackle the thorny topic of trade since Trump slapped steep new levies on China last month, sparking a robust retaliation from Beijing. “These talks reflect that the current state of the trade relations with these extremely high tariffs is ultimately in the interests of neither the United States nor China,” Citigroup global chief economist Nathan Sheets told AFP, calling the tariffs a “lose-lose proposition.”The tariffs imposed by Trump on the Asian manufacturing giant since the start of the year currently total 145 percent, with cumulative US duties on some Chinese goods reaching a staggering 245 percent.In retaliation, China put 125 percent tariffs on US goods.Ahead of the meeting, Trump signalled he might lower the tariffs, suggesting on social media that an “80% Tariff on China seems right!”However, his press secretary Karoline Leavitt later clarified that the United States would not lower tariffs unilaterally, and that China would also need to make concessions.Going into the meeting, both sides played down expectations of a major change in trade relations, with Bessent underlining a focus on “de-escalation” and not a “big trade deal,” and Beijing insisting the United States must ease tariffs first.The fact the talks are even happening “is good news for business, and for the financial markets,” said Gary Hufbauer, a senior non-resident fellow at the Peterson Institute for International Economics (PIIE).But Hufbauer cautioned he was “very sceptical that there will be any return to something like normal US-China trade relations,” with even a tariff rate of 70 to 80 percent still potentially halving bilateral trade.- China ‘better equipped’ – China’s vice premier went into the discussions buoyed by Friday’s news that China’s exports rose last month despite the trade war.The unexpected development was attributed by experts to a re-routing of trade to Southeast Asia to mitigate US tariffs.Among some of the more moderate Trump officials like Bessent and Lutnick, “there’s a realisation that China is better equipped to deal with this trade war than the US,” said Hufbauer.The Geneva meeting comes after Trump unveiled a trade agreement with Britain, the first deal with any country since he unleashed his blitz of global tariffs.The five-page, non-binding deal confirmed to nervous investors that the United States is willing to negotiate sector-specific relief from recent duties, but maintained a 10 percent baseline levy on most British goods.Following the US-UK trade announcement, analysts have voiced pessimism about the likelihood negotiations will lead to any significant changes in the US-China trade relationship.”It’s nice that they’re talking. But my expectations for the actual outcomes of this first round of talks is pretty limited,” Sheets from Citigroup said.In his Truth Social post, Trump said the talks had made “GREAT PROGRESS!!””We want to see, for the good of both China and the U.S., an opening up of China to American business,” he added.

Talks between top US and Chinese officials resumed for a second day Sunday, after US President Donald Trump voiced optimism over the negotiations aimed at de-escalating trade tensions sparked by his aggressive tariff rollout.In a Truth Social post following a first day of talks in Geneva on Saturday, Trump praised the “very good” discussions and deemed them “a total reset negotiated in a friendly, but constructive, manner”.Earlier, Chinese state news agency Xinhua also described the talks in Switzerland as “an important step in promoting the resolution of the issue”.The second day of closed-door meetings between US Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng resumed shortly after 10 am (0800 GMT) Sunday.As on Saturday, the talks were taking place at the residence of the Swiss ambassador to the United Nations in Geneva, a discrete villa with sky-blue shutters near a large park on the left bank of Lake Geneva.”These talks reflect that the current state of the trade relations with these extremely high tariffs is ultimately in the interests of neither the United States nor China,” Citigroup global chief economist Nathan Sheets told AFP, calling the tariffs a “lose-lose proposition.”- ‘Good news’ -The discussions are the first time senior officials from the world’s two largest economies have met face-to-face to tackle the thorny topic of trade since Trump slapped steep new levies on China last month, sparking a robust retaliation from Beijing. The tariffs imposed by Trump on the Asian manufacturing giant since the start of the year currently total 145 percent, with cumulative US duties on some Chinese goods reaching a staggering 245 percent.In retaliation, China put 125 percent tariffs on US goods.Ahead of the meeting, Trump signaled he might lower the tariffs, suggesting on social media that an “80% Tariff on China seems right!”However, his press secretary Karoline Leavitt later clarified that the United States would not lower tariffs unilaterally, and that China would also need to make concessions.Going into the meeting, both sides played down expectations of a major change in trade relations, with Bessent underlining a focus on “de-escalation” and not a “big trade deal,” and Beijing insisting the United States must ease tariffs first.The fact the talks are even happening “is good news for business, and for the financial markets,” said Gary Hufbauer, a senior non-resident fellow at the Peterson Institute for International Economics (PIIE).But Hufbauer cautioned he was “very skeptical that there will be any return to something like normal US-China trade relations,” with even a tariff rate of 70 to 80 percent still potentially halving bilateral trade.- China ‘better equipped’ – China’s vice premier went into the discussions buoyed by Friday’s news that China’s exports rose last month despite the trade war.The unexpected development was attributed by experts to a re-routing of trade to Southeast Asia to mitigate US tariffs.Among some of the more moderate Trump officials like Bessent and Commerce Secretary Howard Lutnick, “there’s a realisation that China is better equipped to deal with this trade war than the US,” said Hufbauer.The Geneva meeting comes after Trump unveiled a trade agreement with Britain, the first deal with any country since he unleashed his blitz of global tariffs.The five-page, non-binding deal confirmed to nervous investors that the United States is willing to negotiate sector-specific relief from recent duties, but maintained a 10 percent baseline levy on most British goods.Following the US-UK trade announcement, analysts have voiced pessimism about the likelihood negotiations will lead to any significant changes in the US-China trade relationship.”It’s nice that they’re talking. But my expectations for the actual outcomes of this first round of talks is pretty limited,” Sheets from Citigroup said.”I think it’s quite possible they’ll walk away from Geneva saying how constructive and productive the talks were, but not actually reducing tariffs at all,” Hufbauer said.In his Truth Social post, Trump said the talks had made “GREAT PROGRESS!!””We want to see, for the good of both China and the U.S., an opening up of China to American business,” he added.