WASHINGTON (AP) โย President Donald Trumpย on Friday floated cutting tariffs on China from 145% to 80% ahead ofย a weekend meetingย among top U.S. and Chinese trade officials as he looks to deescalate the trade war between the worldโs two largest economies.
Top U.S. officials are set to meet withย a high-level Chinese delegationย in Switzerland in the first major talks between the nations since Trump sparked a trade war withย stiff tariffs on imports.
โ80% Tariff on China seems right! Up to Scott B,โ 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 U.S., writing: โWOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DONโT WORK ANYMORE!!!โ
Bessent and U.S. 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 U.S. market worry over the impact of the tariffs onย the prices and supply of consumer goods.
No country has been hit harder by Trumpโs trade war than China, the worldโs biggest exporter and second largest economy. When Trump announced his โLiberation Dayโ 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 otherโs goods have been mounting since then, with the U.S. tariffs against China now at 145% and China tariffs on the U.S. at 125%.
The U.S. tariff includes a 20% rate tied to Trumpโs 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 weekendโs talks.
While an 80% tariff level on Chinese goods would represent a significant reduction from the current 145%, it would still be an extremely high import duty that could create supply chain problems and push up prices.
