Trump says 80% tariff on China “seems right” ahead of trade talks

President Trump has hinted at the possibility of lowering tariffs on China, signaling a potential shift in the ongoing trade war between the two nations. In a post on his social media platform Truth Social, the President mentioned that an “80% Tariff on China seems right,” leaving the decision in the hands of Treasury Secretary Scott Bessent.

This change in tone from the President comes ahead of scheduled talks between Treasury Secretary Bessent, U.S. Trade Representative Jamieson Greer, and Chinese negotiators in Switzerland over the weekend. In another post on Truth Social, Mr. Trump emphasized the importance of China opening up its markets to the U.S., stating that it would be beneficial for the Chinese economy.

The trade dispute between the U.S. and China escalated last month when President Trump imposed tariffs of up to 145% on Chinese imports, prompting China to retaliate with a 125% levy on American goods. The upcoming talks in Switzerland mark the first publicly announced meeting between the two nations since the trade war began, with the Chinese Embassy suggesting that the U.S. initiated the discussions.

Investors and Wall Street are closely watching the developments, hoping for a resolution to the trade conflict that has caused market volatility in recent weeks. Analysts predict that tariffs may be reduced below the 80% initially suggested by Mr. Trump, with UBS Global Wealth Management projecting a settlement around 34%. The potential reduction in tariffs has already had a positive impact on stocks, with markets reacting favorably to the news.

In addition to the trade talks with China, President Trump also announced a new trade deal with the United Kingdom, raising hopes of progress in negotiating agreements with other major trading partners. The President expressed optimism about the ongoing trade negotiations, highlighting the potential for multiple beneficial trade deals in the near future.

Overall, the shift in President Trump’s stance on tariffs and the upcoming talks in Switzerland signal a potential de-escalation in the trade war between the U.S. and China. Investors and businesses are optimistic about the prospects of reduced tariffs and improved trade relations, which could have a positive impact on the global economy.