Trump suggests reducing China tariff rate to 80%

Published: Friday, May 9, 2025 at 3:21 pm

Trump Hints at Tariff Reduction on China, Sparking Trade Speculation

President Donald Trump has signaled a potential shift in his trade policy towards China, suggesting a reduction in tariffs on Chinese goods. In a Friday post on his Truth Social platform, Trump floated the idea of an 80% tariff rate, a significant drop from the current 145%. However, he clarified that the final decision rests with Treasury Department Secretary Scott Bessent.

This announcement comes on the heels of a trade agreement with Britain, which will see the UK's baseline tariff lowered to 10%. Trump also urged China to "open up its market" to the United States, emphasizing that "closed markets don't work anymore."

The current high tariffs have already impacted trade. Data from the Port of Los Angeles reveals a significant decline in import volumes from China. Imports are down over 12% from last week and a staggering 32% compared to the same period last year. This downturn could potentially lead to shortages of certain goods and increased prices for consumers.

Trump's posts also hinted at the possibility of more trade deals in the future, describing them as "all good (GREAT!) ones!" The timing of these statements coincides with Bessent's departure for trade talks in Switzerland, where he is scheduled to meet with China's lead representative on economic matters.

The President's comments represent a notable shift from his stance just days prior, when he responded with a simple "No" to a question about reducing tariffs on China. The ambiguity surrounding the 80% figure – whether it's a negotiation point or a firm goal – leaves the future of US-China trade relations uncertain.

BNN's Perspective: While a reduction in tariffs could potentially ease trade tensions and benefit consumers, the impact of such a move is complex. A moderate approach would involve carefully considering the potential economic consequences, including the impact on American businesses and the need for fair trade practices. It's crucial to balance the desire for lower prices with the need to protect American industries and ensure a level playing field.

Keywords: Trump, China, tariffs, trade, trade deals, Scott Bessent, import volumes, Port of Los Angeles, Truth Social, economy, US-China trade, trade policy, tariff reduction, Britain, market access, economic matters

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