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US President Donald Trump has signaled his opening to cut tariffs in China ahead of Saturday talks of high interest among the two largest economies in the world, as both sides seek to escalate their trade war.
In a post on his social network of truth, Trump suggested that the US could almost halve its tariffs on Chinese goods, which stands at 145 percent, calling on Beijing to open its markets for US products.
“The 80% fee for China seems right! Up to Scott B,” he said, in a reference to the Geneva meeting led on the US side by Treasury Secretary Scott Bessent.
Bessent representative and trade Jamieson Greer have settled to meet China’s Deputy Prime Minister, Lifeng, as both countries seek to seek ways to issue their big taxes on one another in a title confrontation that threatens the global economy.
Howard Lutnick, the US Secretary of Trade, in an interview with Fox News on Friday evening, said current levels of tariff tariffs would lead to a “breakdown” between the two economies, and said Trump was inclined to “de-escalate” the conflict of trade. Still, he said that “the president will hold important fees for trade with China. This is his objective, this is his expectations.”
Despite current US sloping tariffs in China, Friday data showed that China’s general exports increased significantly in April, strengthening Beijing’s hand before talks.
While Chinese companies diverted trade flows from USA in South East Asia, Europe and other destinations, exports increased 8.1 percent in dollar terms compared to a year ago, China’s customs service said.
Later on Friday, the White House explained that Trump “still remains in his position that he will not unilaterally bring tariffs to China. We must see omissions from them,” the press secretary of Caroline Leavitt told journalists.
“As for 80 percent, this was a number the president threw there and we will see what happens this weekend,” she added.
Trump’s “ERUTING Liberation Day” reports on April 2 shocked global markets, which have returned after the president banned most of his “reciprocal” taxes.
But this recovery has prompted US tasks for China remain in the country, as have China’s vengeance tariffs up to 125 percent in US imports.
While the S&P 500 index has been widely recovered from the steep losses it suffered shortly after April 2, it has fallen 0.5 percent this week and changed on Friday.
Libby Cantrill, head of public policy in the Bonds Pimco Bonds, warned that while “some fee mitigation over the next few weeks” may be possible, “the chances of a stable essential deal coming from these weekend talks are very low”.
She stressed that the trade agreements historically took on average 18 months to agree and 25 more to implement, and that the US-Kina relationship was “only deteriorated” since Trump’s first term.
“We can see a positive reaction from the net capital market, but any agreement would only be in the name,” she said.
Trump’s suggestion that Washington can reduce tasks in Beijing came a day after he completed an agreement to ensure tariff relief for the UK, his first since began trade war in April.
But people familiar with the issue said that the figures Trump sailed in his truth social posting were probably a negotiating tactic ahead of Saturday’s talks than a current target.
China’s Ministry of Trade said this week had decided to deal with the US “based on the full consideration of global expectations, interests and calls of China by American businesses and consumers”.
Beijing had previously said that the US should cut tariffs as a prerequisite for negotiations, but has since mitigated its position.
Bessent, who has characterized the Geneva meeting as an attempt to escalate the trade war, has also labeled current US and China tariffs on each other as “non-sustainable”.
The US Federal Reserve announced this week that Trump’s tariffs had increased the uncertainty of policymakers and could increase inflation and unemployment.
Washington has closed in negotiations with other countries for last month, as Trump banned his tariffs for most trading partners for 90 days.
On Friday, Trump wrote on social media that there were “many trade agreements in The Hopper, all good (great!)!”
However, privately, many foreign officials have shown that talks with Washington seem to be progressing slowly, with US officials unable to articulate specific demands.
Additional reporting from William Langley to Guangzhou, Joe Leahy in Beijing and Steff Chavez in Washington
