Donald Trump said on Friday, ahead of the high-stakes talks on trade scheduled this weekend in Switzerland, that a tariff of 80% on Chinese imports would “seem right.”
This comment was made in a Truth Social posting and signals an aggressive US position just a few days before official negotiations are held between the two nations.
“80% tariff on China seems to be right!” “Up to Scott B,” Trump wrote, in reference to Treasury Secretary Scott Bessent who will lead US officials during discussions with Chinese officials.
This weekend, Bessent along with Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng for the first publically confirmed discussions between two countries aimed at de-escalating trade tensions.
Tariff wars between the US and China
A tariff of 80% would be a significant reduction from the 145% duty currently applied to most Chinese products, yet it is still significantly higher than historical norms.
The 10% base tariff that was agreed to in the US/UK trade agreement announced on Thursday would be far higher.
This proposal is part of the US’s efforts to restructure global trade relations.
Although some tariffs announced previously were suspended in April, China remains the focus of White House tariff policy.
Washington and Beijing have a tariff of more than 100% each on the other’s products.
The Office of the US trade Representative estimates that the US will export $143.5 billion worth of goods to China by 2024, while it imports $438.9, highlighting the magnitude and complexity of the relationship.
Trump has rejected making any early concessions, such as preemptive reductions in tariffs.
He said that any relaxation will be only after substantial progress is made in the talks.
The president said earlier this week that American consumers were willing to pay higher prices for a reduced range of products if they helped shift manufacturing jobs to the US.
Trump has expressed an openness towards lowering tariffs, but his latest remarks suggest that any deal with China could be difficult to reach in the near future.
Mixed market reaction
Markets showed signs of uncertainty following Trump’s tweet.
The Dow Jones Industrial Average futures have lost their earlier gains, and are flat as of the date this article was written.
S&P-500 futures increased by 0.1% and Nasdaq 100 futures gained 0.2%.
Investors are cautious despite the optimism generated by the preliminary agreement reached with the UK.
This was the first agreement since Trump unveiled his “reciprocal tariff” framework last month.
The agreement is missing key details, and it will likely require more negotiation.
As new information becomes available, this post may change.
