Trump Signals Tariff Cut to 80% Before China Talks

During his Friday announcement President Donald Trump proposed lowering US tariffs on Chinese goods from 145% to 80% before weekend trade negotiations in Switzerland to reduce the US-China trade conflict. Through his Truth Social account Trump passed the decision to Treasury Secretary Scott Bessent while asking China to establish market access. The dialogue between Bessent and Trade Representative Jamieson Greer with Vice Premier He Lifeng represents the initial high-level meeting since Trump implemented his April “Liberation Day” tariffs which reduced Chinese imports by 60%. The April export data showed a 17.6% decline in US imports from China while overall exports increased by 8.1% and Beijing imposed 125% tariffs on US products. The trade data from April showed reduced impact because of transshipments and pre-tariff contracts. The 145% tariff rate faces opposition from Trump’s team but they struggle to achieve a balance between tariff income and market access. Deputy Foreign Minister Hua Chunying of China demonstrated optimism about handling trade matters. The negotiations took place after the UK and US reached an agreement to lower their automotive and steel import duties. The prolonged trade negotiations will continue with possible minimal tariff reductions because deep US-China tensions maintain their impact on global supply chains and consumer prices.