Trump teases China tariff reduction before key talks

U.S. President Donald Trump has suggested a potential reduction in tariffs on Chinese goods dropping the fees from 145% to 80% ahead of high-stakes trade negotiations in Geneva this weekend. The talks, led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer for the U.S. and Vice Premier He Lifeng for China, aim to de-escalate the ongoing trade war between the world’s two largest economies. Trump’s tariff position “80% Tariff on China seems right! Up to Scott B,” Trump wrote on his Truth Social platform, referencing Bessent who will lead the U.S. delegation at the talks. However, White House Press Secretary Karoline Leavitt later clarified that Trump “is not going to unilaterally bring down tariffs on China” without concessions from Beijing. Chinese exports show resilience Despite the U.S.' steep tariffs, China’s overall exports showed surprising resilience in April, growing 8.1% in dollar terms compared to the previous year, according to data released Friday by China’s customs service. Chinese companies have successfully diverted trade flows from the U.S. to alternative markets in Southeast Asia and Europe. Economic impact and concerns Commerce Secretary Howard Lutnick told Fox News that current tariff levels would lead to a “decoupling” between the two economies, adding that Trump was keen to “de-escalate” the conflict while maintaining “significant tariffs” on Chinese goods. The trade tensions have already impacted both economies. The U.S. Federal Reserve warned this week that Trump’s tariffs have increased economic uncertainty and could drive up both inflation and unemployment rates, while China’s central bank recently cut interest rates to stimulate economic activity. Implications for luxury markets For luxury brands and retailers, a potential reduction in tariffs, though still high at 80%, could provide some relief from pricing pressures. Current tariff levels have effectively created trade embargoes that disrupt supply chains and force significant price increases on imported goods in both directions.

Trump teases China tariff reduction before key talks

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Published May 10, 2025

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Trump teases China tariff reduction before key talks