U.S. President Donald Trump has hinted at lowering tariffs on Chinese imports from 145% to 80%, signaling a potential shift in his administration’s trade strategy ahead of a critical meeting between top U.S. and Chinese officials in Switzerland.
Scheduled for this weekend in Geneva, the trade discussions mark the first high-level engagement between the two nations since Trump’s aggressive tariff policy escalated tensions, disrupting global supply chains.
U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will lead the American delegation, engaging in senior-level conversations with Chinese counterparts to address economic concerns.
Potential De-escalation Amid Economic Strains
Trump’s latest comments, posted on Truth Social on Friday, suggest a willingness to adjust tariffs, a notable shift from his earlier stance of maintaining high levies until China made concessions.
“80% Tariff on China seems right! Up to Scott B,” Trump wrote, referencing Scott Bessent, his Treasury Chief and key trade negotiator.
He also urged China to open its markets to U.S. goods, adding, “WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!”
The move comes amid growing market concerns over the impact of tariffs on consumer prices and U.S. economic performance.
Following the April 2 rollout of Trump’s “Liberation Day” tariffs, China retaliated by imposing 125% levies on American goods, fueling uncertainty across financial markets.
Trade Policy Dilemmas and Strategic Challenges
Despite signs of flexibility, Trump faces competing economic priorities. His administration has previously stated that high tariffs are essential for generating revenues to offset tax cuts, but maintaining them could stifle trade and hinder market access for U.S. exporters.
Additionally, Trump has expressed a desire to isolate China economically, yet his tariff policies targeting other trade partners complicate efforts to build a unified global trade alliance against Beijing.
With the U.S.-China trade discussions set to unfold this weekend, investors and policymakers are watching closely to see whether Trump’s hinted tariff reductions translate into substantive policy changes or remain strategic negotiation tactics.
What you should know
- Beijing has been putting pressure on Washington to revoke unilateral tariffs as the United States and China prepare for critical trade negotiations this weekend.
- China’s Commerce Ministry spokesman He Yadong stressed during a Thursday briefing that the US must demonstrate sincerity by canceling punitive trade measures.
- Chinese state media recently reported that Beijing had decided to engage with the US after fully considering global expectations, the country’s interests, and appeals from American businesses.
The report added that China is open to talks but reiterated that if the country decides to continue to fight this trade war, it will fight to the end.
The trade war has triggered turmoil in financial markets and sent shockwaves across global trade.
