US President, Donald Trump has floated cutting tariffs on China from 145% to 80% before a weekend meeting as he looks to de-escalate the trade war.
This came as top US officials are expected to meet a high-level Chinese delegation this weekend in Switzerland in the first significant talks between the two nations since Trump provoked a trade war with stiff tariffs on imports.
The US President wrote in a social media post, “80% Tariff on China seems right! Up to Scott B,” referring to Scott Bessent, the Treasury Secretary.
Bessent and the Trade Representative Jamieson Greer are due to meet the Chinese Vice Premier, He Lifeng, in Switzerland on Saturday and Sunday, marking the first talks between the superpowers since Trump unveiled his tariffs.
It comes amid growing US market concern over the impact of the tariffs on the prices and supply of consumer goods.
No country has been hit harder by Trump’s trade war than China, the world’s biggest exporter and second largest economy.
When the US President announced his “liberation day” tariffs on April 2, 2025, China retaliated with tariffs of its own, a move that Trump viewed as demonstrating a lack of respect.
The tariffs on each other’s goods have been mounting since then, with the US tariffs against China now at 145% and China tariffs on the US at 125%.
On Thursday, May 8, 2025, Britain became the first to announce a deal with the US that reduces tariffs on British cars and lifts them on steel and aluminium, while, in return, Britain will open up markets to US beef and other farm products.
However, Analysts said that traders were more excited about the Republican leader’s comments on the forthcoming talks with China in which he hinted at easing the stiff measures aimed at the world’s No 2 economy.
Trump told reporters that he thought the negotiations would be “substantive”, and when asked if reducing the levies was a possibility he said, “it could be.”
“We’re going to see. Right now you can’t get any higher. It’s at 145% so we know it’s coming down. I think we’re going to have a very good relationship.”
Donald Trump
China Confident In Ability To Manage Trade Issues
Meanwhile, Deputy Foreign Minister, Hua Chunying, said that China had full confidence in its ability to manage US trade issues.
Speaking to reporters, Hua said, “We have no fear,” adding that the trade policy of the US administration could be sustained.
“We do not want any kind of war with any country. But we have to face up to the reality. As you can see, people have full confidence in our capability to overcome all the difficulties … Ordinary people in the US already feel suffering from the tariff war.”
Hua Chunying
Chinese trade with the US slumped in April even as its total exports beat forecasts, official figures showed.
Exports to the US – one of China’s top trading partners – fell 17.6% in April, data showed. April’s economic data showed that China’s imports beat expectations, dropping 0.2%, compared with the 6% slide analysts had estimated.
Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, said in a note, “The damage of the US tariffs has not shown up in the trade data in April.”
“This may be partly due to transshipment through other countries, and partly because of trade contracts that were signed before the tariffs were announced. I expect trade data will weaken in the next few months gradually.”
Zhiwei Zhang
Trade between the world’s two largest economies has slowed considerably since Trump’s rounds of tariffs on China.
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