U.S.-China Trade Talks Progress as EU Prepares Contingency Tariffs

U.S. and Chinese trade representatives held their first high-level call since agreeing to a 90-day tariff truce in Geneva, signaling cautious diplomatic progress. Deputy Secretary of State Christopher Landau and Executive Vice Foreign Minister Ma Zhaoxu acknowledged the importance of maintaining dialogue amid ongoing economic tensions.

Meanwhile, the EU has presented Washington with a comprehensive trade proposal featuring phased tariff reductions and cooperation in strategic sectors like artificial intelligence. Brussels simultaneously prepared $108 billion in retaliatory measures should negotiations collapse—a MOVE that could further disrupt global supply chains.

Major retailers including Walmart and Nike continue passing tariff costs to consumers through price hikes. According to HSBC data, nearly a quarter of U.S. firms anticipate tariffs eroding more than half their revenue, underscoring the macroeconomic stakes of these negotiations.