US President Donald Trump on Friday floated cutting tariffs on China from 145 per cent to 80 per cent ahead of a weekend meeting among top US and Chinese trade officials as he looks to deescalate the trade war between the world's two largest economies.
Top US officials are set to meet with a high-level Chinese delegation in Switzerland in the first major talks between the nations since Trump sparked a trade war with stiff tariffs on imports.
“80 per cent Tariff on China seems right! Up to Scott B,” Trump wrote on his social media account on Friday morning, referring to Scott Bessent, his Treasury chief, who has been a point person on trade. The Republican president also called on China to open its markets to the US, writing: “WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON'T WORK ANYMORE!!!”
Bessent and US Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng in Geneva in the most-senior known conversations between the two countries in months, according to announcements this week by the Trump administration and the Chinese commerce ministry. It comes amid growing US market worry over the impact of the tariffs on the prices and supply of consumer goods.
No country has been hit harder by Trump's trade war than China, the world's biggest exporter and second largest economy. When Trump announced his “Liberation Day” tariffs on April 2, China retaliated with tariffs of its own, a move that Trump viewed as demonstrating a lack of respect. The tariffs on each other's goods have been mounting since then, with the US tariffs against China now at 145 per cent and China tariffs on the US at 125 per cent.
The US tariff includes a 20 per cent rate tied to Trump's claim that Beijing has failed to stem the flow of chemicals used to manufacture fentanyl, and this portion of the tariff is unlikely to be brought up in this weekend's talks.
While an 80 per cent tariff level on Chinese goods would represent a significant reduction from the current 145 per cent, it would still be an extremely high import duty that could create supply chain problems and push up prices.
And even with the reduction, the tariff rate would still be higher than the combined 74 per cent rate on China that Trump announced at his April 2 “Liberation Day” event.
For China, experts say Beijing would insist that any agreement from the US side would be credible and implemented.
Trump had previously said that he wouldn't lower the tariffs against China to hold substantive talks. But he showed signs of softening during an Oval Office appearance on Thursday, when he said he “could” lower the 145 per cent rate charged on Chinese goods if the weekend talks go well.
“We're going to see,” Trump said. “Right now, you can't get any higher. It's at 145, so we know it's coming down.” The president's team has acknowledged that the 145 per cent tariff was not sustainable, as taxes at that rate were effectively an embargo on any trade between the two countries.
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