President Donald Trump suggested on Friday that he was open to sharply reducing the tariffs that the United States had imposed on China, as American and Chinese negotiators prepare to meet in Switzerland this weekend for high-stakes trade talks.
Trade tensions between the US and China have roiled international markets and the global economy. The negotiations on Saturday and Sunday are intended to de-escalate the situation and help set the stage for a broader trade pact between the two economic superpowers.
In a post on social media, Trump said that an 80% tariff on China "seems right," adding that it would be "up to Scott B," an apparent reference to treasury secretary Scott Bessent.
An 80% tariff would be a big drop from the current 145% that Trump imposed on Chinese imports in recent months. But that high a level would still shut off most trade between the countries. Chinese data released on Friday showed shipments from that country to the US plunged 21% in April from the same period a year ago.
It's also unclear if the talks will lead to any short-term resolution for two govts that have serious economic disputes and have taken a harsh tone toward the other in recent months.
The Trump administration has been racing to strike trade deals with other countries ahead of a self-imposed deadline for additional tariffs to go in effect on most trading partners. But it has remained in a standoff with China, which is already subject to a minimum tariff of 145% on all imports.
This week, the two sides agreed to hold meetings in Geneva that will include Bessent; Jamieson Greer, the US trade representative; and He Lifeng, China's vice premier for economic policy.
Stock markets in the US opened higher on Friday after Trump expressed a willingness to lower tariffs and said in a separate post that many trade deals were "in the hopper." On Thursday, Trump highlighted a new preliminary economic pact with Britain as evidence that his tariff strategy is working.
Despite signs of greater flexibility from Trump, an 80% tariff may not be low enough to restart business across the Pacific. While it differs from company to company, some executives have said that tariffs above 50% are generally enough to freeze exports to the US. Companies that are not able to find an alternative source of supply for their products outside China are facing the prospect of bankruptcy and layoffs as the summer grinds on and even 25% tariffs can be crippling. nyt
Trade tensions between the US and China have roiled international markets and the global economy. The negotiations on Saturday and Sunday are intended to de-escalate the situation and help set the stage for a broader trade pact between the two economic superpowers.
In a post on social media, Trump said that an 80% tariff on China "seems right," adding that it would be "up to Scott B," an apparent reference to treasury secretary Scott Bessent.
An 80% tariff would be a big drop from the current 145% that Trump imposed on Chinese imports in recent months. But that high a level would still shut off most trade between the countries. Chinese data released on Friday showed shipments from that country to the US plunged 21% in April from the same period a year ago.
It's also unclear if the talks will lead to any short-term resolution for two govts that have serious economic disputes and have taken a harsh tone toward the other in recent months.
The Trump administration has been racing to strike trade deals with other countries ahead of a self-imposed deadline for additional tariffs to go in effect on most trading partners. But it has remained in a standoff with China, which is already subject to a minimum tariff of 145% on all imports.
This week, the two sides agreed to hold meetings in Geneva that will include Bessent; Jamieson Greer, the US trade representative; and He Lifeng, China's vice premier for economic policy.
Stock markets in the US opened higher on Friday after Trump expressed a willingness to lower tariffs and said in a separate post that many trade deals were "in the hopper." On Thursday, Trump highlighted a new preliminary economic pact with Britain as evidence that his tariff strategy is working.
Despite signs of greater flexibility from Trump, an 80% tariff may not be low enough to restart business across the Pacific. While it differs from company to company, some executives have said that tariffs above 50% are generally enough to freeze exports to the US. Companies that are not able to find an alternative source of supply for their products outside China are facing the prospect of bankruptcy and layoffs as the summer grinds on and even 25% tariffs can be crippling. nyt
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