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US President Donald Trump has indicated his willingness to reduce tariffs on China before the high-stakes talks between the two largest economies on Saturday, aiming to ease their trade war tensions.
In a post on his Truth Social network, Trump proposed cutting US tariffs on Chinese goods by nearly half from the current 145 percent, while urging Beijing to open up its markets to American products.
“80% Tariff on China seems right! Up to Scott B,” he mentioned, referring to the Geneva meeting led by Treasury Secretary Scott Bessent on the US side.
Bessent and Trade Representative Jamieson Greer are scheduled to meet with China’s Vice-Premier He Lifeng as both countries seek to find ways to reduce their significant tariffs in a trade conflict that poses a threat to the global economy.
Despite the high tariffs imposed by the US on China, data released on Friday revealed a sharp increase in China’s overall exports in April, strengthening Beijing’s position ahead of the negotiations.
With Chinese companies redirecting trade away from the US to other regions, exports surged by 8.1 percent in dollar terms compared to the previous year, according to China’s customs service.
Later on Friday, the White House clarified that Trump “still maintains his stance of not unilaterally reducing tariffs on China. We expect concessions from them as well,” Press Secretary Karoline Leavitt informed reporters.
“As for the 80 percent figure, that was a number the president mentioned, and we will wait to see what unfolds this weekend,” she added.
Trump’s tariff announcements on “liberation day” on April 2 had a significant impact on global markets, with most of the reciprocal levies being paused by the president. However, the recovery has slowed down, and the US tariffs on China remain in place, along with China’s retaliatory tariffs on US imports.
While the S&P 500 index has somewhat recovered from the initial losses following April 2, it experienced a 0.5 percent decline this week and remained relatively stable on Friday.
Libby Cantrill, Head of Public Policy at US bond group Pimco, cautioned that while some reduction in tariffs may occur in the coming weeks, the likelihood of a substantial, lasting deal emerging from the talks this weekend is minimal.
She emphasized that historical trade agreements typically took around 18 months to negotiate and an additional 25 months to implement, noting that the US-China relationship had deteriorated further during Trump’s first term.
“We may see a positive market reaction, but any agreement would likely be only on paper,” she stated.
Trump’s suggestion of potentially lowering tariffs on Beijing on Friday followed a recent deal with the UK, marking his first tariff relief agreement since the trade war began in April.
However, sources familiar with the matter indicated that the figures mentioned by Trump in his Truth Social post were likely part of a negotiation strategy ahead of Saturday’s discussions rather than a concrete target.
China’s Ministry of Commerce stated this week that the decision to engage with the US was made after careful consideration of global expectations, China’s interests, and calls from US businesses and consumers.
Previously, Beijing had insisted that the US should reduce tariffs as a prerequisite for negotiations, but has since softened its stance.
Bessent, who views the Geneva meeting as a de-escalation effort in the trade war, described the current tariffs between the US and China as unsustainable.
The US Federal Reserve cautioned this week that Trump’s tariffs had heightened uncertainty among policymakers and could lead to increased inflation and unemployment.
Over the past month, Washington has been engaged in negotiations with other countries since Trump temporarily halted tariffs on most trading partners for 90 days.
On Friday, Trump mentioned on social media that there are “Many Trade Deals in the hopper, all good (GREAT!) ones!”
However, numerous foreign officials privately indicated that discussions with Washington were progressing slowly, with US officials struggling to outline specific demands.
Additional reporting by William Langley in Guangzhou, Joe Leahy in Beijing, and Steff Chávez in Washington