President Trump indicates potential reduction of tariffs on Chinese imports before trade discussions in Switzerland. His remarks suggest an 80% tariff as a possibility, down from current rates that can reach up to 245%. This follows China’s retaliatory tariffs and ongoing negotiations aim to reduce tensions rather than finalize a large trade agreement. Positive market responses emerge as stakeholders watch developments closely.
President Donald Trump hinted on Friday at a possible reduction in tariffs on Chinese imports just as the United States and China prepare for trade discussions in Switzerland this weekend. His remarks came via a post on his Truth Social platform, where he stated, “80% Tariff on China seems right!” This would mark a drop from the current average of 145 percent, with some goods facing even steeper tariffs of up to 245 percent.
Trump referred to Treasury Secretary Scott Bessent with the comment, “Up to Scott B.” Bessent is set to meet with China’s Vice Premier He Lifeng in Geneva, aiming to alleviate ongoing tensions that are affecting global markets. Alongside him, US Trade Representative Jamieson Greer will participate in the talks.
The President’s post did not clarify whether he views the proposed 80 percent tariff as a temporary measure or a long-term solution once the trade conflict with China is resolved. China’s government has retaliated against the US tariffs by imposing a steep 125 percent tax on American goods.
Professor Xu Bin from the China Europe International Business School remarked, “I think this is basically to show that both sides are talking, and that itself is very important,” highlighting the significance of the negotiations given China’s retaliatory stance. Meanwhile, China has maintained that its prerequisite for any agreement is that the US must lift existing tariffs first.
The upcoming meetings in Switzerland are said to focus on de-escalation rather than sealing a large trade deal. Treasury Secretary Bessent expressed that these conversations aim to reduce tensions, and this sentiment has also been echoed by Ngozi Okonjo-Iweala, the head of the World Trade Organization. She labeled the talks a “positive and constructive step toward de-escalation.”
Josh Lipsky from the Atlantic Council captured the cautious sentiment surrounding the talks. He commented, “I don’t expect major developments out of this, other than perhaps a better understanding of each side’s negotiating position,” signalling that expectations might need to be tempered.
These trade negotiations come shortly after Trump proclaimed a trade agreement with Britain, which he labeled historic. This deal is the first the US has formed since the imposition of global tariffs last month. The agreement includes provisions for the US to negotiate tariff relief concerning British vehicles, steel, and aluminum, while the UK will allow in US beef and other agricultural products.
However, a baseline 10 percent levy on most British goods remains unchanged, and US Commerce Secretary later hinted that additional tariffs could be on the way, especially for countries that enjoy trade surpluses with the US.
“Allies that have been meeting their commitments and don’t have a trade surplus can expect fewer tariffs,” Lutnick told CNBC, emphasizing the US administration’s strategy. Trump has indicated that the agreement with Britain is just the beginning, expressing hope that similar discussions with the European Union and China might lead to fruitful outcomes soon.
On the financial markets front, traders responded positively to the news, with US stocks opened on a high note and European markets showing strength after mixed results in Asian trading.
In conclusion, President Trump’s communication about potential tariff reductions ahead of the Geneva trade talks suggests a willingness to negotiate amidst ongoing tensions. The discussions, focused on de-escalation rather than a transformative agreement, reflect a cautious optimism among stakeholders. With additional tariff strains still looming, it is clear that both nations have significant interests at stake and much remains to be resolved in the near future.
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