In a significant development ahead of high-stakes trade negotiations, U.S. President Donald Trump suggested that an 80% tariff on Chinese goods “seems right,” marking his first specific proposal to adjust the existing 145% tariffs imposed on Chinese imports. This statement comes as top U.S. and Chinese officials prepare to meet in Geneva, Switzerland, aiming to de-escalate the ongoing trade tensions between the world’s two largest economies.

The upcoming talks will involve U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer meeting with China’s economic chief, He Lifeng. These discussions are seen as a potential first step toward resolving a trade dispute that has disrupted global supply chains and affected international markets.

President Trump’s comments were made via a social media post, where he emphasized the need for China to open its markets to American goods, stating, “China should open up its market to USA — would be so good for them!!! Closed markets don’t work anymore!!!” He added, “80% tariff on China seems right. Up to Scott B.”

While the White House has downplayed reports of significant tariff reductions, labeling them as speculative, Trump’s public suggestion of an 80% tariff indicates a possible shift in the administration’s approach to the trade dispute. The Chinese government, however, has criticized the U.S. for what it describes as “abusive and bullying economic tactics,” expressing firm opposition to the current U.S. trade strategy.

The financial markets have shown mixed reactions to these developments. Wall Street’s major indexes rose for the third consecutive day, buoyed by investor optimism ahead of the Geneva talks. However, uncertainties remain, as many companies have retracted annual forecasts amid the trade backdrop.

Chinese exporters, anticipating potential easing of tariffs, have begun preparing to resume shipments to the U.S. Following a significant downturn due to the hefty tariffs, there has been a recent uptick in shipping activities, with exporters and shipping agents booking space in anticipation of improved trade conditions.

As the Geneva talks approach, the international community watches closely, hoping for a resolution that could stabilize global trade and economic relations between the U.S. and China. The outcome of these discussions may set the tone for future economic policies and international trade agreements.

Source: Reuters