China sold $10bn worth of toys to the US last year

Corporatenews24 Desk : Despite months of escalating tariffs and fiery rhetoric, the world’s two largest economies are finally sitting down to talk. Over the weekend, top trade officials from the U.S. and China met in Switzerland for their first high-level discussions since President Donald Trump imposed sweeping tariffs on Chinese imports in January.

The meeting comes after months of retaliation, with both sides imposing punishing levies—U.S. tariffs on Chinese goods now stand at a staggering 145%, while some American exports to China face 125% duties. Yet, despite the heated exchanges, there are signs that both nations are looking for a way out of the deadlock.

Who Blinks First?

 

The negotiations mark a potential thaw in tensions, but neither side wants to appear weak.

“Neither side wants to appear to be backing down,” said Stephen Olson, a former U.S. trade negotiator and senior fellow at Singapore’s ISEAS-Yusof Ishak Institute. “The talks are taking place now because both countries have judged that they can move forward without appearing to have caved in.”

China, however, insists the talks were Washington’s idea. Foreign Ministry spokesperson Lin Jian stated that the discussions were held “at the request of the U.S.,” while the Commerce Ministry framed it as a concession to American businesses and consumers.

The Trump administration, meanwhile, claims China is the desperate party.

“They want to do business very much because their economy is collapsing,” Trump said at the White House, dismissing Beijing’s suggestion that the U.S. initiated the talks.

Consumers Feel the Pinch

 

The trade war has already begun affecting everyday Americans. China sold $10 billion worth of toys to the U.S. last year, but Trump acknowledged that higher tariffs could mean fewer and more expensive toys for American kids.

“They may have two dolls instead of 30 dolls,” he quipped at a recent cabinet meeting. “And maybe the two dolls will cost a couple bucks more than they would normally.”

With inflation fears growing and Trump’s approval ratings slipping, pressure is mounting on both sides to ease tensions. Over 60% of Americans believe the president is too focused on tariffs, raising concerns about a potential economic slowdown.

“Both countries are feeling pressure to provide a bit of reassurance to increasingly nervous markets, businesses, and domestic constituencies,” Olson noted.

A Long Road Ahead

 

While the talks have sparked optimism, experts caution that a substantial deal could take months.

This round of discussions is likely just an “exchange of positions”, with future meetings needed to outline a concrete agenda. The negotiations may follow a pattern similar to Trump’s first term, where a “Phase One” deal in 2020 paused some tariffs but left deeper issues unresolved—such as China’s industrial subsidies and intellectual property practices.

This time, Olson suggests, we could see a “Phase One deal on steroids”—one that goes further but still avoids the most contentious topics, like China’s ties with Russia or the fentanyl trade.

Yet, real solutions remain distant.

“The systemic frictions that bedevil the U.S.-China trade relationship will not be solved any time soon,” Olson said. “Geneva will only produce anodyne statements about ‘frank dialogues’ and the desire to keep talking.”

For now, businesses and consumers on both sides will be watching closely—hoping for relief from a trade war that shows no clear end in sight. Source : Bbc

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