Overview

• US and Chinese officials, including Treasury Secretary Scott Bessent and Vice Premier He Lifeng, are meeting in Switzerland this week to discuss reducing tariffs and easing trade tensions.
• The US has imposed 145% tariffs on Chinese imports, with China retaliating with 125% tariffs on US goods, significantly disrupting supply chains and trade flows.
• The US economy contracted by 0.3% in Q1 2025, while businesses delay investments and hiring due to uncertainty surrounding the tariff policies.
• Major US companies, including General Motors and Ford, have reported multibillion-dollar losses and revised financial forecasts due to rising costs linked to the tariffs.
• China has introduced economic stimulus measures, such as interest rate cuts, to counteract the trade war’s impact, while US officials signal that any immediate resolution is unlikely.