- President Donald Trump proposed an 80% tariff on Chinese goods as “seem[ing] right” in a Truth Social post, a reduction from the current 145% but higher than the 10% U.S.-U.K. tariff, ahead of U.S.-China trade talks in Switzerland led by Treasury Secretary Scott Bessent.
- The U.S. imported $438.9 billion from China and exported $143.5 billion in 2024, highlighting China’s role as a key trading partner, amid Trump’s push for China to open its markets and his optimistic outlook for a “very good weekend” of negotiations.
- While the talks are not expected to produce a full trade deal, Trump’s shift from dismissing tariff reductions to suggesting they are “coming down” indicates openness to de-escalation, though the 80% rate’s purpose as a long-term goal or negotiation tactic remains unclear.
President Donald Trump’s signal of an 80% tariff on Chinese goods, described as “seem[ing] right” in a Friday Truth Social post, has set the stage for pivotal U.S.-China trade talks in Switzerland this weekend, with Treasury Secretary Scott Bessent leading the U.S. delegation. This proposed rate marks a significant reduction from the current 145% tariff on many Chinese imports, yet it remains substantially higher than the 10% baseline tariff in the U.S.-U.K. trade agreement announced Thursday. The U.S. imported $438.9 billion in goods from China in 2024, while exporting $143.5 billion, underscoring China’s role as one of America’s largest trading partners, according to the Office of the U.S. Trade Representative. It should be noted, however, that the U.S. goods trade deficit with China reached a massive $295.4 billion in 2024, marking a 5.8% increase ($16.3 billion) compared to 2023.
Trump’s social media rhetoric, including a call for China to “open up its market to USA” and a claim that “closed markets don’t work anymore,” reflects his broader strategy to disrupt global trade dynamics.
His suggestion of an 80% tariff – though ambiguous as either a long-term target or a negotiating tactic – comes after months of escalating tensions, with both nations imposing tariffs exceeding 100% on each other’s goods. Unlike many trading partners who benefited from a partial tariff pause on April 9, China faced sustained high levies, prompting Beijing to argue that the 145% U.S. tariff must be lowered for meaningful negotiations. Initially dismissive, Trump’s tone softened by Thursday, when he expressed optimism to reporters, stating, “I think we will have a very good weekend” and hinting that tariffs are “coming down” if talks progress.
The Switzerland discussions, involving Bessent and Chinese counterparts, are not anticipated to yield a comprehensive trade deal but could lay the groundwork for de-escalation. Trump’s trade counselor Peter Navarro, speaking on Bloomberg Friday, called the weekend “interesting” for markets but offered no specifics on whether the U.S. would lower tariffs unilaterally. The proposed 80% rate, while less punitive than 145%, could still severely restrict bilateral trade, potentially raising prices for U.S. consumers and disrupting supply chains, given China’s dominance in electronics, machinery, and consumer goods. Trump’s pivot to a more conciliatory stance may reflect pressure to stabilize markets and address economic concerns, especially after his earlier claim that the U.S. is “losing nothing” by reducing trade with Beijing.
China’s response to the 80% tariff proposal remains unclear, but its insistence on mutual tariff reductions suggests a hardline stance. The trade imbalance, with a $295.4 billion U.S. deficit in 2024, has – and rightly so – long fueled Trump’s protectionist policies, yet the interconnectedness of the two economies complicates a full decoupling. Investors are closely monitoring the talks for signs of progress, as any tariff reduction could ease inflationary pressures and boost market confidence. However, the absence of a clear U.S. strategy – whether the 80% rate is a firm goal or a bargaining chip – adds uncertainty to an already volatile trade environment. The outcome of this weekend’s negotiations will likely shape the trajectory of U.S.-China economic relations and influence global trade stability.
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