Trump considers lowering tariffs on China to 80% ahead of trade talks
President Donald Trump is considering reducing tariffs on China from 145% to 80% ahead of a weekend meeting with top U.S. and Chinese trade officials, following China's imposition of 125% tariffs on U.S. goods.
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The White House emphasizes that China is a major player but needs U.S. consumers, as U.S. officials gear up for the first major meetings with China since President Trump sparked a trade war.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet with top Chinese trade officials in Switzerland, aiming to deescalate the trade war.
Karoline Leavitt, White House press secretary, said, "The president still remains with his position that he is not going to unilaterally bring down tariffs on China. We need to see concessions from them as well."
President Trump has said he wouldn't lower the tariffs on China to get them to the negotiating table, but could do so if the talks went well.
"Right now, you can't get any higher than 145, so we know it's coming down. I think we are going to have a very good relationship," Trump said on Thursday.
When White House Correspondent Kalyn Norwood asked the president on Air Force One on Sunday if there was a number he wanted to see from a deal with China, Trump responded, "No," indicating no specific number he was aiming for.
Economists say the trade war is beginning to take a toll, with China's exports to the U.S. dropping by 21% last month. Steve Cochrane, chief APAC economist at Moody's Analytics, said, "There's a lot of anecdotes anyway, that there are the beginnings of some supply chain constraints in the U.S. for equipment and materials, particularly in the automobile industry."
Cochrane also commented on the proposed 80% tariff rate, saying, "It's high enough that it won't really bring back any trade between the countries. So there's a whole lot more to negotiate."
The White House says Treasury Secretary Bessent has the full support of the president. Meanwhile, a spokesperson from China stated that in seeking any agreement, China would not "sacrifice its principles or global equity or justice."
