Trump proposes tariff cut on China: 80% sounds right!
US President Donald Trump hinted Friday at the possibility of reducing tariffs on China from 145 percent to 80%, ahead of negotiations between the two countries in Switzerland to discuss their trade relationship.
Trump wrote on Truth Social, “80% on China seems like the right decision!”
“It’s up to Scott,” he added, referring to the head of Washington’s negotiating team, US Treasury Secretary Scott Besant, who will meet with Chinese Vice Premier He Lifeng this week in Geneva in an effort to calm tensions in global markets.
Trump didn’t mention in his post whether he believed the 80% tariff rate should be the final level of tariffs on Chinese goods if the trade war ends, or whether it was merely a temporary measure.
Later, White House spokeswoman Caroline Leavitt said that Trump “won’t reduce unilateral tariffs on China… We also need to see concessions from them”.
China responded by imposing 125% tariffs on US goods.
The high tariffs amount to a de facto trade embargo between the world’s two largest economies, with private shipping data indicating a sharp slowdown in goods bound for the United States from China.
China stresses that its position that the United States must lift tariffs first hasn’t changed, pledging to defend its interests.
Trump’s post on Truth Social came the day after he announced a historic trade deal with Britain, his first with a specific country since launching a wide-ranging tariff war last month.
Trump said the agreement with Britain would be the first of many, expressing hope that the difficult talks with the European Union, as well as China, would yield results soon.
Many countries are keen to hold talks with Washington to avoid Trump’s tariffs, which range from 10% on many countries to exorbitant tariffs on China, Trump’s main target.
On another level, major stock markets generally rose on Friday, amid growing optimism about easing tensions related to tariffs.
US futures rose, while European markets stabilized in the green after mixed performance in Asia.
The German DAX stock index on the Frankfurt Stock Exchange hit a record high before Trump’s announcement, recouping losses from the US president’s tariff announcements in April.
As part of the first trade agreement since Trump launched the tariff war, Washington agreed to reduce tariffs on British cars and completely lift them on steel and aluminum.
In return, Britain will open its markets to American beef and other agricultural products, but the basic 10% tax on British goods will remain in place.
