Ahhh, Switzerland…
The land of neutrality.
The Swiss have always held a reputation for not getting involved in world politics…
Which makes it weird that its always the meeting place between countries in conflict.
And this past weekend – one of the biggest meetings ever took place between the US and China – as the two global powerhouses try to figure out this whole trade situation.
That’s right…
In the serene mountains of Switzerland – far from the chaotic floors of Wall Street and the manufacturing hubs of Shenzhen – representatives from the United States and China sat down for what could be one of the most important trade conversations of the year.
But don’t let the postcard setting fool you…
I can tell you without a shadow of a doubt that this meeting was anything but a vacation.
What happened?
Was there a resolution?
Let’s get into this…
With tensions between the two nations reaching their highest point in years…
Both sides brought long lists of grievances and even longer memories.
The stakes couldn’t be higher: tariffs, supply chains, global commodity flows and economic stability all hang in the balance…
And while no one was naïve enough to expect a full resolution over Swiss chocolate and fresh mountain air – even modest progress might give the world’s two largest economies a much-needed breather.
America’s priorities were clear: loosen restrictions on the export of critical minerals and demand stronger cooperation from China on curbing the flow of fentanyl into U.S. markets.
China biggest ask was also clear: to roll back the crushing 145% tariff now imposed on most of its exports to the US – a tax that’s already straining its manufacturing sector and limiting trade routes.
That’s something they got – as both countries agreed to 90-day pause.
America agreed to reduce the 145% tariff imposed last month down to 30% – while China agreed to lower its tariff rate on US goods to 10% from 125%.
While it’s not exactly a long term solution – it’s definitely a thaw…
And it could come at a better time.
Both economies have been showing early warning signs of strain – rising prices, squeezed supply chains and jittery consumer sentiment – just to name a few.
A little de-escalation could go a long way toward stabilizing things heading into the last half of the year.
And make no mistake…
The effects of this meeting have been felt far beyond Zurich – in the nick of time.
Why is the timing important? Because both countries have plans…
China, for instance, has been trying to future-proof itself.
In April, shipments to the US dropped 21% year-over-year…
But instead of folding, China boosted exports to friendlier regions like Southeast Asia, India and Europe – pushing total exports up 8%.
Clever? Absolutely.
Sustainable? Maybe not.
Those markets might tolerate a short-term surge of cheap goods – but if local industries start feeling the squeeze or if Washington leans on its allies – China’s workaround could crumble fast.
Meanwhile, the US isn’t exactly handing out free passes…
Britain recently managed to snag minor exemptions – getting tariff relief on a few prized exports like beef, airplane engines and luxury cars.
But the broader reality was harsh: most UK goods are still hit with a minimum 10% tariff. That sends a clear message: America might negotiate around the edges – but the age of zero-tariff trade is over.
But, as investors, we’ll take what we can get…
A 90-day reprieve can go a long way to creating a long, lasting relationship.
That said, companies, investors and consumers should still be preparing for a world where supply chains are longer, costs are higher and national interests trump global efficiency…
Just in case.
Negotiations this past weekend might not change the world overnight…
But a few degrees of thaw between the US and China is the key to preventing a deeper freeze.
And in today’s high-stakes economy – even small wins matter.
That’s what we aim for too – wins.
Small or big – a win is a win – and a collection of small victories can turn into a HUGE win over time.
At GorillaTrades, we understand that the global economy is on a very delicate edge at the moment…
But even so – because of the way our system is set up we don’t have to worry about it. We don’t just react to headlines – because the headlines mean nothing.
It all comes down to data.
Does the company have the right numbers to make it a profit play? Or something to pass up? That’s what the data shows us…
And we’d love to have you back along for the ride for the next round of recommendations – just so you can see for yourself that no matter what the markets are doing…
There are always possibilities.
Re-join GorillaTrades today and make smarter moves while the rest of the market scrambles to catch up…
Or continue doing it YOUR way.
Regardless, if you ever need us – we’re here.
So, no matter what transpired this past weekend – we’ll continue to help members make money…
And we can help you too.”In the middle of difficulty lies opportunity.” – Albert Einstein