President Donald Trump has hinted at the possibility of reducing U.S. tariffs on Chinese goods, stating that an 80% tariff “seems right” ahead of upcoming trade talks. The announcement was made through his social media platform as Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer prepare to meet with Chinese officials in Geneva. Trump noted that the decision would ultimately be up to Secretary Bessent, saying, “Up to Scott B.”
The proposal to lower tariffs follows a period of escalating trade tensions between the U.S. and China. Since tariffs were increased, the U.S. imposed a 145% tariff on Chinese imports, with China retaliating by levying a 125% tariff on U.S. products. These tariffs have had a significant impact on trade, resulting in a 21% drop in Chinese exports to the U.S. in April.
Economists warn that even with a potential tariff reduction, an 80% tariff would still affect consumer prices and the availability of goods. While the proposed measure could reduce some tension between the two nations, it is unlikely to fully relieve the economic strain caused by the ongoing trade dispute.
Both countries are aiming to resolve the trade imbalance and reduce economic pressures on their industries. However, the prospects for a comprehensive agreement remain uncertain as both sides maintain firm positions on key issues.
