US and China Set High-Level Trade Talks After Tariff Threats

The United States and China have agreed to begin immediate high-level trade talks in a bid to prevent a new escalation in their economic dispute, officials said on Tuesday. The announcement came after a sharp rise in tensions following recent tariff increases and hours after President-elect Donald Trump warned that he could impose 60% tariffs on Chinese goods.

The move marks a notable shift toward diplomacy after weeks of mounting pressure on global markets and renewed fears of a broader trade war between the world’s two largest economies. While neither side disclosed the full agenda for the talks, the discussions are expected to focus on tariffs, trade imbalances, and broader economic concerns that have strained bilateral relations.

Investors responded positively to the news, with markets rallying on hopes that both governments may be willing to step back from further confrontation. Analysts said the agreement to hold talks could help stabilize sentiment in the near term, though they cautioned that significant differences remain.

The latest development suggests both Washington and Beijing are under pressure to avoid a cycle of retaliatory measures that could disrupt supply chains, raise consumer prices, and weigh on global growth. Whether the talks produce a lasting breakthrough remains uncertain, but the decision to engage immediately signals a possible opening for de-escalation.