Trade talks signal hope of stability, experts say

The recent US-China trade negotiations held in Kuala Lumpur, Malaysia, have been described by experts as a pivotal moment for stabilizing economic relations between the world’s two largest economies. The talks, which took place over two days, involved high-level officials from both nations, including China’s Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent, alongside US Trade Representative Jamieson Greer. Anthony Moretti, an associate professor at Robert Morris University, emphasized the importance of these discussions in fostering bilateral growth, though he acknowledged the challenges posed by shifting US policies. Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, highlighted the critical nature of the talks, warning that their outcome could either lead to a tariff truce in 2026 or a resurgence of trade tensions. Both experts stressed the need for consistent and durable agreements to bolster business confidence and global economic growth. The negotiations addressed key issues such as export controls, tariff suspensions, and expanded cooperation, with both sides describing the sessions as constructive. Markets responded positively to the progress, with the S&P 500 reaching a record high and gold futures declining as risk appetite increased. Wendy Cutler, former acting US Trade Representative, praised the focus on cooperation rather than rigid commitments, signaling a potential shift towards more collaborative trade relations.