NEW YORK (Reuters) -U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said on Sunday they reached a deal with China to cut the U.S. trade deficit, describing “substantial progress” in high-stakes talks with Chinese officials but offering no details as two days of negotiations concluded in Geneva.
CHRISTOPHER HODGE, CHIEF ECONOMIST, U.S., NATIXIS, 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 U.S. 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 on U.S. growth.”
JACK ABLIN, FOUNDING PARTNER AND CHIEF INVESTMENT OFFICER, CRESSET CAPITAL, CHICAGO
“It’s obviously positive headlines, we are going to hear more tomorrow. I’m not sure I would hit the ‘buy’ button on what we have heard today, but if we can make substantive progress with China I think the market will like it.”
“To me, this news is slightly better than expectations. I think most of us at the end of last week thought that there would be some progress made.”
“I did not expect a conclusion to the talks just because the whole portfolio of goods and services is so broad. … But it sounds like we are going to take a trade war with China off the table.”
ERIC KUBY, CHIEF INVESTMENT OFFICER, NORTH STAR INVESTMENT MANAGEMENT CORP., CHICAGO:
“This is a step in the right direction, showing that both sides are interested in coming to a constructive conclusion and develop a better trade relationship. The details are quite sketchy, but I think the direction sounds to be more cooperative rather than combative, and I think that we have to view that as a positive.
“There were a variety of possible outcomes of this weekend’s meetings, ranging from both sides walking out and pointing the finger at the other side to announcing that the extra tariffs have been taken off the table. What we got here was something more in the middle, but more towards the positive side. So I think this is a step in the right direction. It is not likely to trigger a dramatic market rally, but it’s certainly also not going to create any selling pressure.”
GENNADIY GOLDBERG, HEAD OF US RATES STRATEGY, TD SECURITIES, NEW YORK: