President Trump announced on Friday that the U.S. could reduce tariff pressure on China, cutting the import tax from 145% to 80%.
“China’s 80% tariffs seem right! Until Scott B,” Trump mentioned in a post regarding Treasury Secretary Scott Bescent, hinting at future discussions.
The suggested new tariff rates align with Trump’s earlier idea of conducting trade negotiations in Beijing, which is the second-largest economy globally.
Bescent is set to engage in trade discussions with Swiss Chinese officials this week. As of Tuesday, he indicated that he hadn’t yet spoken with his counterparts. These upcoming dialogues have caused a positive market reaction, leading to a rise in stock prices around the world, as the Trump administration aims to reassure investors and consumers about the economy’s stability.
According to reports, Germany’s DAX rose by 0.7%, Paris’ CAC 40 by 0.8%, and the UK’s FTSE 100 by around 0.4%. Additionally, both the S&P 500 and Dow Jones Industrial Average showed increases.
“China should open a market in the U.S. It’s very good for them!!! The closed market won’t work anymore!!!” Trump wrote in another post on True Social.
This announcement follows Trump’s implementation of a 10% baseline tariff on most foreign imports last month. He has also been in trade negotiations with nearly all global partners during a 90-day pause.
China was specifically left out of these negotiations, which along with the existing 20%, caused the U.S. to raise tariffs to 125%. In response, the Chinese commerce minister implemented a 125% import tax on U.S. goods entering China.
Recently, Trump hinted that China’s tariff obligations might be lessened.
“You can’t get any higher now. It’s 145%, so I know it’s coming down. I think we’re having a very good relationship,” Trump told reporters during a media event at the White House on Thursday.
“I think we’re going to have a good weekend with China. I think they have a lot to gain,” he noted. “In a way, I think they’re making more profit than we are.”
On Wednesday, the president indicated that any reductions in tariffs would come with conditions.
In a statement from the Oval Office, Trump reiterated to Chinese officials that “we need help to stop fentanyl from entering.” Notably, China is a primary source of chemicals used in drug production.
