President Donald Trump announced expectations for substantive U.S.-China trade negotiations over the weekend, signaling a possible reduction in punitive U.S. tariffs on Beijing from 145%.
These negotiations aim to ease the trade war that has been impacting global markets and economic ties between the two countries.
The big picture: The President expressed confidence in the potential for tariff reductions, highlighting a softening tone between the U.S. and China after a prolonged standoff over tariffs and trade.
- The talks are scheduled to take place in Switzerland, with top officials from both countries participating, including U.S. Treasury Secretary Scott Bessent, chief trade negotiator Jamieson Greer, and China’s economic tsar He Lifeng.
- The President acknowledged the impact of the trade war on financial markets and U.S. relationships with other countries, and highlighted the ongoing efforts of his team to negotiate multiple trade deals.
Go deeper: Despite the pause in reciprocal tariffs for most nations, tariffs on China remained in place, provoking questions about the potential economic repercussions of a prolonged trade war between the two countries.
- Trump indicated a willingness to consider reducing the levies if the talks went well, emphasizing that the current tariff rate of 145% was at its maximum and was expected to come down.
- He expressed optimism regarding the U.S.-China talks, stating that he believed China was eager to make a deal and that he would like to see China open up its economy.
- The President also noted that China may have far more to gain from the negotiations than the United States, and expressed his admiration for Chinese President Xi Jinping while acknowledging differences on trade and attributing blame to China for the start of the COVID-19 pandemic.
