“The government will in the future provide all the financing the Bundeswehr needs to become the strongest conventional army in Europe,” Merz said. “Our friends and partners expect this of us; more than that, they are really demanding it of us.”
, and China retaliated by hitting American imports with a 125% levy. Tariffs that high essentially amount to the countries’ boycotting each other’s products, disrupting trade that last year topped $660 billion.Still, top members of the Trump administration were following the president’s lead in insisting that a hard reset of U.S.-China trade relations could be in the offing.
“Secretary Bessent has made clear that one of his objectives is to de-escalate,” U.S. Commerce Secretary Howard Lutnick, who wasn’t in Geneva, said on “Fox News Sunday.” He added that the U.S. and China have both imposed tariffs that are “too high to do business, but that’s why they are talking right now.”“We are the consumer of the world. Everybody wants to sell their goods here,” Lutnick said. So they need to do business with America and we’re using the power of our economy to open their economy to our exporters.”Kevin Hassett, director of the White House National Economic Council, told Fox News Channel’s “Sunday Morning Futures” that “what’s going to happen in all likelihood is that relationships are going to be rebooted. It looks like the Chinese are very, very eager to play ball and to renormalize things.”
“We’re essentially starting over, starting from scratch with the Chinese,” Hassett said “and they seem to think that they really want to rebuild a relationship that’s great for both of us.”The talks mark the first time the sides have met face-to-face to discuss the issues. The prospects for a major breakthrough still appear slight, but even a small drop in tariffs — particularly if taken simultaneously — could help restore some confidence.
“Negotiations to begin de-escalating the growing US–China trade war are badly needed and it’s a positive sign that both sides were able to gracefully move beyond their bickering over who had to call first,” Jake Werner, director of the East Asia Program at the Quincy Institute for Responsible Statecraft, said in an email.
The Trump administration has imposed tariffs on countries worldwide, but its fight with China has been the most intense. Trump’s import taxes on goods from China include a 20% charge meant to pressure Beijing into doing more to stop the flow of the synthetic opioidFloodwaters inundate homes and vehicles in Shannon Hills, Ark., Saturday, April 5, 2025, as a second day of storms brought widespread flooding to the region. (Colin Murphey/Arkansas Democrat-Gazette via AP)
Floodwaters inundate homes and vehicles in Shannon Hills, Ark., Saturday, April 5, 2025, as a second day of storms brought widespread flooding to the region. (Colin Murphey/Arkansas Democrat-Gazette via AP)Carole Smith walks through her flooded home on Saturday, April 5, 2025, in Frankfort, Ky. (AP Photo/Jon Cherry)
Carole Smith walks through her flooded home on Saturday, April 5, 2025, in Frankfort, Ky. (AP Photo/Jon Cherry)Overnight into Sunday morning there were new tornado warnings issued in Alabama and Mississippi, along with flash flood warnings in several counties in Kentucky, Mississippi and Tennessee.