Trump suggests cutting China tariff to still-high 80% ahead of U.S.-Beijing trade talks

Published: Friday, May 9, 2025 at 12:36 pm

Trump Signals Tariff Shift on China, Eyes 80% Rate Ahead of Trade Talks

President Donald Trump has signaled a potential shift in his trade strategy with China, suggesting he's willing to lower tariffs on Chinese goods to 80%. This announcement comes ahead of crucial trade talks scheduled for this weekend in Switzerland, where U.S. officials, including Treasury Secretary Scott Bessent, will meet with their Chinese counterparts.

The proposed 80% tariff, revealed in a Truth Social post, represents a significant decrease from the current 145% tariff levied on many Chinese imports. However, the move may still be viewed as a barrier to trade by investors and business leaders. The proposed rate is also considerably higher than the 10% baseline tariff agreed upon in the recent U.S.-U.K. trade agreement.

It remains unclear whether Trump intends the 80% rate to be a long-term solution or a negotiating tactic. The talks in Switzerland are not expected to yield a comprehensive trade deal, with U.S. Trade Representative Jamieson Greer aiming for "stability" as a foundation for future discussions.

China remains a central focus of Trump's efforts to reshape the global trade landscape. Tensions between the U.S. and China escalated, leading to tariffs exceeding 100% on goods from both nations. The U.S. trade deficit with China is substantial. In 2024, the U.S. exported $143.5 billion in goods to China while importing $438.9 billion. Trump also emphasized the need for China to "open up its market" in a separate Truth Social post. Recent shipping data indicates a decline in goods moving from China to the U.S., raising concerns about potential price increases and shortages.

BNN's Perspective: While a reduction in tariffs is a positive step, an 80% rate still presents a significant hurdle to free trade. The focus on "stability" in the upcoming talks suggests a cautious approach, which, while understandable, may not fully address the underlying trade imbalances and economic concerns. A more pragmatic approach, balancing protectionist measures with the need for open markets, is essential for long-term economic prosperity.

Keywords: Trump, China, tariffs, trade talks, 80% tariff, Scott Bessent, U.S.-China trade, trade deficit, trade agreement, import, export, global trade, Switzerland, negotiating, economy, business, markets, prices, shortages

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