Trump Signals Potential Tariff Reduction Ahead of Geneva Trade Talks

President Trump suggests lowering tariffs on Chinese imports to 80% as trade talks approach in Geneva. This could reduce current tariffs significantly, with meetings set to focus on de-escalation. The U.S. is also negotiating a new agreement with the U.K. as optimism grows in stock markets.

In a surprising move, President Donald Trump hinted on Friday at the possibility of reducing tariffs on Chinese imports ahead of much-anticipated trade discussions in Geneva this weekend. On his Truth Social platform, Trump expressed that an “80% Tariff on China seems right!” This proposal suggests a significant cut from the current levels, which reach as high as 145 percent, and in some instances, these tariffs amount to as much as 245 percent when cumulative duties are considered.

The President referenced Treasury Secretary Scott Bessent, who is set to meet with Chinese Vice Premier He Lifeng during the talks in Switzerland, aimed at easing the ongoing tensions in trade that have been affecting global markets. U.S. Trade Representative Jamieson Greer is also confirmed to attend these discussions. However, Trump did not clarify whether his suggestion for reducing tariffs to 80 percent is intended as a permanent solution or more of a temporary adjustment during negotiations.

In response to the hefty tariffs from Washington, Beijing has retaliated with levies as high as 125 percent on American goods. Xu Bin, a professor at the China Europe International Business School, remarked to AFP, “I think this is basically to show that both sides are talking and that itself is very important.” He noted that China is unique in its tit-for-tat approach to tariffs in the context of Trump’s trade policies.

China has made it clear that its stance remains firm: the U.S. must lift tariffs first if any resolution is to be reached. Bessent has indicated that the main focus of the meetings will center on de-escalation rather than forging a comprehensive trade deal. Meanwhile, Ngozi Okonjo-Iweala, the head of the World Trade Organization, has characterized the upcoming talks as a “positive and constructive step toward de-escalation.”

“Sustained dialogue between the world’s two largest economies is critical to easing trade tensions, preventing fragmentation along geopolitical lines and safeguarding global growth,” she was quoted saying. The economic experts are not overly optimistic about the outcome, with Josh Lipsky from the Atlantic Council indicating that he does not foresee major developments from the Geneva talks, but hopes for a “better understanding of each side’s negotiating position.”

Interestingly, the Geneva discussions follow Trump’s recent announcement of a trade agreement with the United Kingdom, described as historic. This agreement marks the first formal deal since Trump initiated sweeping global tariffs last month. The deal outlines sector-specific reliefs, particularly pertaining to British cars, steel, and aluminum, while simultaneously maintaining a 10 percent levy on most British goods.

The Secretary of Commerce has cautioned that nations with a trade surplus with the U.S. may face even steeper tariffs. Many countries are now expressing interest in negotiating with Washington to prevent the full impact of Trump’s tariffs. On the financial front, stock markets showed signs of optimism on Friday, with U.S. markets opening higher and European indexes rising as well, as investors hope for a resolution to the ongoing tariff disputes.

In summary, President Trump’s suggestion to lower tariffs on China signals a potentially pivotal moment ahead of trade discussions in Geneva. As both sides prepare to communicate, the focus seems to be on de-escalating existing tensions rather than sealing any major agreements. With the backdrop of a recent deal with the U.K., global stock markets are reacting positively, but experts advise caution regarding expectations from the ongoing talks.

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