Rising hope is spreading across Latin America as the Chinese mainland and the US resume formal trade talks in London. High-level teams met to build on last month's Geneva understandings, signaling a shared desire to de-escalate tensions.
While negotiators kept specific outcomes under wraps, the two-day dialogue focused on rebuilding trust, addressing structural trade imbalances and preventing another tariff flare-up. In April, the White House's executive orders on "reciprocal tariffs" had triggered uncertainty in global supply chains, leading to cargo slowdowns and warnings of retail price hikes.
US GDP shrank by an annualized 0.3 percent in Q1 of 2025 – its first decline since 2022 – and consumer spending dipped amid recession fears. Capital flows also shifted, with investors eyeing Europe and other markets as alternatives.
China's President Xi Jinping and US President Donald Trump recently spoke by phone to affirm progress in Geneva and commit to regular economic consultations based on mutual respect. Xi stressed that while the Chinese mainland comes to the table with principles, open communication is vital for consensus-building.
For Latin American economies, this symbolic thaw offers cautious optimism. Businesses hope that easing tariff tensions will stabilize shipping costs and smooth commodity trade, laying groundwork for more predictable global markets.
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Cautious optimism in Latin America as China and U.S. talk again
cgtn.com
