US-China Trade Tensions Ease: Exporters Resume Shipping, European Stocks and Oil Prices Rise Amid Tariff Talks in Switzerland

US • Business • 05/09 09:02
US-China Trade Tensions Ease: Exporters Resume Shipping, European Stocks and Oil Prices Rise Amid Tariff Talks in Switzerland

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet China's Vice Premier He Lifeng in Geneva on May 10-11 to discuss reducing tariffs, currently up to 145% on Chinese imports. Chinese exporters are resuming shipments to the U.S., and European stock indices and oil prices have risen in response. The talks, facilitated by Switzerland, aim to de-escalate the trade war. The U.S. is considering lowering tariffs to 50-54%, and the resumption of trade is driven by both optimism and practical concerns of U.S. retailers facing inventory shortages.

Key Updates

9h ago

U.S.-China Tariff Talks in Geneva to Resume Sunday After Lengthy Saturday Session Shows No Progress

U.S.-China tariff negotiations in Geneva ended Saturday without public progress, set to resume Sunday. Led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, the talks are the first since President Trump increased tariffs on Chinese imports to 145%, with China retaliating at 125%. The discussions, held at Villa Saladin, are shrouded in secrecy, with no official statements. The negotiations aim to address trade tensions and potentially stabilize global markets, amid concerns over tariffs impacting U.S.-China trade, which totaled over $660 billion last year.

15h ago

U.S. Beef Imports from Brazil Surge Despite Tariffs, Driven by High Domestic Prices

In early 2025, U.S. imports of Brazilian beef surged by 67% to $557.15 million, despite a new 36.4% tariff. High domestic cattle prices and low inventories have driven U.S. meatpackers to rely on Brazilian beef, especially for fast-food chains. The Trump administration's tariffs and retaliatory measures are reshaping global meat trade, potentially redirecting more Brazilian beef to China. This shift could raise prices for American consumers as Brazil fills its tariff-free quota rapidly, and U.S. supply constraints persist amid trade tensions with China.

15h ago

US and China Hold High-Stakes Trade Talks in Geneva Amid Escalating Tariff War

U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with China's Vice Premier He Lifeng in Geneva on May 10, 2025, to address escalating trade tensions. This marks the first formal talks since President Trump increased tariffs on Chinese imports to 145%, prompting a 125% retaliatory tariff from China. The discussions, held at a confidential location, aim to de-escalate the trade war affecting global markets. Despite low expectations for a breakthrough, the talks are seen as a positive step towards reducing economic confrontation between the two largest economies.

19h ago

Trump Considers Reducing China Tariffs Amid US-UK Trade Talks, Uncertainty Persists

Former President Donald Trump announced a potential reduction of tariffs on Chinese imports from 145% to 80% ahead of U.S.-China trade talks in Geneva. The announcement, made on May 9, 2025, via Truth Social, comes amid mixed signals from the White House and ongoing negotiations with the UK. Treasury Secretary Scott Bessent leads the U.S. delegation in talks with Chinese Vice Premier He Lifeng. China demands tariff rollbacks for meaningful negotiations. The Trump administration's trade policy remains unpredictable, affecting financial markets and international relations.

05/10 06:30

Delta and Korean Air Invest $550 Million in WestJet Amid US-Canada Travel Challenges; Tesla Shares Surge on US-China Trade Optimism

Delta Air Lines and Korean Air are investing $550 million to acquire a 25% stake in WestJet, aiming to enhance global connectivity amid US-Canada travel challenges. Delta will invest $330 million for a 15% stake, and Korean Air $220 million for a 10% stake. Meanwhile, Tesla shares rose nearly 5% on optimism over US-China trade talks, despite weak sales. US markets ended the week mixed, with President Trump suggesting a potential reduction in tariffs on Chinese goods, which influenced market sentiment.

05/10 01:01

Major Shipping Firms Halt Asia-US Routes Amid Trump-Era Tariffs, Impacting 1.3 Million Containers Annually

Major global shipping companies, including MSC, ZIM, and the Ocean Alliance, have suspended six weekly Asia-to-U.S. routes, affecting over 1.3 million 40-foot containers annually. This move follows a 145% tariff on Chinese imports imposed by the Trump administration in April 2025, leading to a collapse in container bookings. The suspensions impact routes to U.S. West, East, and Gulf Coast ports. The industry is also seeing increased blank sailings and vessel downsizing as carriers adjust to reduced demand and stabilize freight rates.

05/09 22:31

HSBC Launches TradePay for Import Duties to Aid Businesses with Rising Tariff Costs

HSBC has expanded its TradePay platform with a new service, TradePay for Import Duties, to help businesses manage import duty costs amid rising tariffs. This service allows companies to access credit and make direct payments for import levies, aiding liquidity and working capital management. Since 2023, HSBC's TradePay has facilitated $2.3 billion in global trade finance. The expansion addresses the financial strain from tariffs introduced by the U.S. administration, offering a timely solution for businesses facing increased import costs.

05/09 13:30

U.S. and China to Hold First In-Person Trade Talks in Geneva: Aiming for Tariff De-escalation

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng in Geneva, Switzerland, on Saturday for the first in-person trade talks since the Trump administration's tariff reimposition. The meeting, facilitated by Swiss diplomacy, aims to de-escalate the trade war between the two nations. Both sides have signaled a willingness to engage, though no major agreement is expected. The talks occur amid global economic uncertainty, with the U.S. and China facing economic challenges and Switzerland seeking to address its own trade concerns.

05/09 09:31

U.S. Treasury Yields Steady Amid U.S.-UK Trade Deal Announcement; Gold Prices Drop Before U.S.-China Talks

U.S. Treasury yields remained stable on Friday, with the 10-year note at 4.37% and the 2-year yield at 3.86%, following the announcement of a U.S.-UK trade agreement. This deal, the first since President Trump imposed global tariffs, adjusts tariffs and opens new export opportunities. Gold prices fell 0.8% to $3,277.67 per ounce as optimism over trade reduced demand for safe-haven assets. Attention is now on U.S.-China talks in Switzerland, where officials aim to ease tariff tensions, though no formal agreement is expected.

05/09 09:02

US-China Trade Tensions Ease: Exporters Resume Shipping, European Stocks and Oil Prices Rise Amid Tariff Talks in Switzerland

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet China's Vice Premier He Lifeng in Geneva on May 10-11 to discuss reducing tariffs, currently up to 145% on Chinese imports. Chinese exporters are resuming shipments to the U.S., and European stock indices and oil prices have risen in response. The talks, facilitated by Switzerland, aim to de-escalate the trade war. The U.S. is considering lowering tariffs to 50-54%, and the resumption of trade is driven by both optimism and practical concerns of U.S. retailers facing inventory shortages.

US and China Prepare for Tariff Talks in Switzerland

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet with China’s Vice Premier He Lifeng in Geneva on May 10–11. The talks, hosted by Switzerland, are aimed at de-escalating the trade war that has seen the U.S. impose tariffs of up to 145% on Chinese imports, with China retaliating with levies of up to 125% on American goods.

According to U.S. officials cited by multiple outlets, the Trump administration is considering reducing the 145% tariff to a range between 50% and 54%. President Trump hinted at the move during a meeting with UK officials, stating, “It’s at 145 so we know it’s coming down,” while expressing optimism about future relations with China.

The Swiss Foreign Ministry confirmed its role in facilitating the dialogue, positioning the talks as a diplomatic win for the neutral country. The discussions are expected to cover not only broad tariff reductions but also product-specific duties, export controls, and the recent removal of de minimis exemptions on low-value imports.

Chinese Exporters Resume Shipments to the U.S.

After a sharp decline in trade activity in April, Chinese exporters are beginning to resume shipments to the United States. According to logistics data from Flexport, sailings from China to the U.S. dropped by 60% last month, and shipping operator Hapag-Lloyd reported a 30% cancellation rate on China-bound cargo.

However, since late April, freight forwarders have reported a surge in bookings for mid-May shipments. Exporters serving major U.S. retailers, including Walmart, confirmed they are preparing to restart deliveries. A toy manufacturer from Dongguan noted that while volumes remain below pre-tariff levels, American clients are restocking inventories to avoid potential shortages.

The resumption of trade is driven not only by optimism over tariff reductions but also by practical concerns. U.S. retailers face the risk of empty shelves if goods such as toys, home furnishings, and electronics are not shipped by June. “Companies are running out of inventory and Trump has toned down his China talk,” said Jonathan Chitayat, Asia head of Genimex Group.

European Markets React Positively

European stock markets responded positively to the developments. The pan-European STOXX 600 index rose 0.3% on Friday, with Germany’s DAX gaining 0.7%. Energy and basic resources sectors led the gains, rising 1.8% and 1%, respectively.

The STOXX 600 is on track for its fourth consecutive weekly gain, up nearly 14% from its early April low. Analysts attribute the rally to growing investor confidence that the U.S. will strike trade deals to avoid further economic disruption. Corporate earnings have also supported the market, with 58.4% of companies in the index beating first-quarter earnings estimates, according to Refinitiv IBES data.

Oil Prices Climb on Trade Optimism

Oil markets also reflected the improving sentiment. On Thursday, West Texas Intermediate (WTI) crude rose by 3.05% to $59.84 per barrel, while Brent crude climbed 2.72% to $62.78. Prices continued to edge higher on Friday, with WTI trading at $60.33 and Brent at $63.27 as of 07:31 GMT.

The gains were driven by expectations that the U.S.-China talks could lead to a reduction in tariffs, potentially boosting global trade and energy demand. “If the two set a date to start formal trade negotiations and agree to ratchet down their current steep tariffs... crude could stack on another $2–$3 per barrel,” said Vandana Hari, founder of Vanda Insights.

China’s crude oil imports in April were up 7.5% year-on-year, despite a month-on-month dip, as state refiners stockpiled supplies during maintenance outages. The data provided a further boost to oil market sentiment ahead of the Geneva talks.

Broader Trade Developments

The U.S. has also finalized a limited trade agreement with the United Kingdom, reducing tariffs on British cars and allowing some steel and aluminum imports tariff-free. The deal, announced by President Trump and UK Prime Minister Keir Starmer, is the first such agreement since the U.S. imposed sweeping tariffs earlier this year.

Commerce Secretary Howard Lutnick stated that while the U.S. plans to roll out dozens of trade deals in the coming month, a 10% baseline tariff on most countries will remain in place. Meanwhile, the European Union is preparing its own response, with the European Commission unveiling a list of over $100 billion in U.S. goods that could face retaliatory tariffs if talks fail.

Export and Trade Data

China’s total exports rose 8.1% in April compared to the previous year, exceeding expectations despite a 21% drop in shipments to the U.S. Imports fell 0.2% year-on-year. Analysts attribute the export surge to frontloading by buyers ahead of potential tariff hikes.

Freightos, a freight-booking platform, reported that container shipping costs between Shanghai and Los Angeles ranged from $2,640 to $3,781 in early May. Prices are expected to rise by $500 per container after May 15 as demand recovers.

References

People Also Ask...

faq

How might the potential tariff reductions impact global trade dynamics and energy demand in the long term?

faq

How can we leverage the US-China tariff talks to push for more sustainable trade practices?

faq

How might the US-China tariff talks in Switzerland impact global trade and energy demand?