President Donald Trump has hinted at a willingness to significantly reduce the U.S. tariff rate on China, currently at an unprecedented 145%, ahead of upcoming trade negotiations. In a recent post on Truth Social, he suggested an “80% Tariff on China seems right,” referencing Treasury Secretary Scott Bessent, as Bessent and U.S. Trade Representative Jamieson Greer prepare to meet with Chinese officials in Geneva for discussions.
During remarks from the Oval Office, Trump indicated he might consider lowering the tariff but emphasized that the existing rates could not increase further. An 80% tariff would still be considerably higher than pre-Trump rates, which began at 20% as a response to China’s alleged failure to manage fentanyl flows, later escalating to 125%.
Trump’s approach to tariff negotiations remains unpredictable. Just the day before, he announced a preliminary agreement with the UK, though details were sparse. The UK accord appears to maintain the U.S.’s current 10% across-the-board duty on imports while signaling potential avenues for U.S. agricultural exports, including beef and ethanol. However, no commitments have been made by the UK to significantly boost imports of these products.
Overall, Trump’s trade strategy continues to adapt, showcasing a blend of aggressive tariffs and tentative agreements, reflecting the ongoing complexities in U.S.-China relations and broader international trade dynamics. As negotiations approach, the fluctuating stance on tariffs could impact market reactions and economic forecasts.
Photo credit
www.nbcnews.com
