Trump wants China tariff at 80%, lower than before but still high, ahead of Switzerland talks.
Key Points:
- While the 80% levy is significantly lower than the current 145% tariff on many Chinese goods, it might still hinder trade.
- It's not clear if the 80% rate is Trump's desired long-term tariff for China or a strategic move in ongoing negotiations.
- China is viewed as the central difficulty in Trump's push to disrupt the global trading environment.
President Donald Trump signaled a potential shift in trade policy with China on Friday, indicating a willingness to lower tariffs to 80% ahead of key trade talks in Switzerland. This proposed 80% levy, stated in a Truth Social post where he mentioned "80% Tariff on China seems right! Up to Scott B," is significantly lower than the current 145% tariff on many Chinese goods. Treasury Secretary Scott Bessent is among the U.S. officials participating in the upcoming discussions with Chinese counterparts.
Despite the reduction, the 80% rate could still be seen as a significant barrier to trade and is notably higher than the 10% baseline tariff in the recent U.S.-U.K. trade agreement. It remains unclear whether Trump intends the 80% rate to be a long-term tariff or a strategic move in negotiations. In another post, Trump expressed optimism about various pending "Trade Deals," describing them as "good (GREAT!) ones!"
China is widely viewed as the primary challenge in Trump's efforts to reshape the global trading system. While tariffs were partially paused on April 9 for many other major countries, tensions with Beijing escalated, leading both nations to impose tariffs exceeding 100% on goods. China is a substantial trading partner for the U.S., with the U.S. exporting $143.5 billion in goods to China and importing $438.9 billion in 2024, according to the Office of the U.S. Trade Representative. Trump further emphasized his stance on China's market in a Truth Social post, stating, "CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!"
The upcoming talks in Switzerland are not expected to yield a comprehensive trade deal. U.S. Trade Representative Jamieson Greer expressed hope on "Power Lunch" that the discussions would bring "stability" that could serve as "a foundation for something more." Recent shipping data indicates a sharp decline in goods flowing from China to the U.S., raising concerns about potential price increases or shortages of certain items in the near future. Friday's comments on China tariffs appear to mark a change in Trump's position, as he had previously stated on Wednesday that he would not reduce tariffs to bring China to the negotiating table.
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