President Donald Trump has expressed readiness to significantly reduce the U.S. tariff rate on China, currently at 145%, ahead of impending trade talks. In a post on Truth Social, Trump suggested that an 80% tariff might be appropriate, referencing Treasury Secretary Scott Bessent. This statement comes as Bessent and U.S. Trade Representative Jamieson Greer prepare for discussions with Chinese officials in Geneva. Trump’s openness to lowering tariffs follows his remarks signaling that rates can’t be raised further.
The proposed 80% tariff would still be substantially higher than pre-Trump rates, which began with a 20% levy in response to China’s handling of fentanyl exports, later escalating to 125%. Trump’s unconventional tariff strategy persists, as he recently hinted at an agreement with the U.K. that would maintain a 10% duty on imports. While this agreement could potentially enhance U.S. exports of agricultural products, it lacks firm commitments from the U.K. to increase imports.
Despite attempts to scale back the steep tariffs introduced in a prior speech, significant levies including 25% duties on steel, aluminum, and auto imports remain. Progress on trade deals has been uneven, contributing to instability in business confidence. Additionally, it appears the existing China tariffs may not have achieved their intended effects, as China’s exports increased in April, with goods being rerouted through Southeast Asia before reaching the U.S., indicating a possible circumvention of tariffs.
Overall, while talks about trade agreements are frequent, tangible progress has been limited, leaving businesses uncertain about the future.
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