NEW YORK (Reuters) – U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said on Sunday that they reached a deal with China to reduce the U.S. trade deficit, describing “substantial progress” in high-risk negotiations with Chinese officials, but provided no details as two days of negotiations were held in Geneva.
Christopher Hodge, Chief Economist, U.S., Natex, New York
“A de-escalation was inevitable and I think it's clear there won't be much durable that comes out of these talks. Perhaps a lowering of tariffs and a purchase agreement for some agriculture products, just like the phase one deal. But nothing that will dramatically open up Chinese markets for US products or change the nature of the trading relationship. I think we can take the left-tail risks off the table, but when all is said and done tariffs will still be dramatically higher and will weigh America's growth.”
Jack Ablin, Founding Partner and Chief Investment Officer, CRESSET Capital, Chicago
“It's obviously a positive headline and we'll hear more tomorrow. I'm not sure what 'buy' button I'll hear today, but if we can make substantial progress in China, I think the market will like it.”
“For me, this news is much better than expected. I think most of us thought at the end of last week there would be some progress.”
“I didn't expect that because the entire portfolio of goods and services is so wide. … But it sounds like we're going to start a trade war with China.”
Eric Kuby, Chief Investment Officer, Chicago North Star Investment Management:
“It’s a step in the right direction, showing that both sides are interested in coming to constructive conclusions and building better trade relations. The details are sketchy, but I think the voice of the direction sounds more cooperative than aggressive, and I think we have to see it as positive.
“There are all kinds of possible outcomes this weekend, from both sides coming out and pointing to the other side to announcing that the additional tariffs have been canceled. What we get here is more of the middle stuff, but more on the positive side. So I think that's the right direction. It's impossible to trigger.
Gennadiy Goldberg, head of U.S. interest rate strategy at TD Securities in New York:
