Washington (Washington Insider Magazine) – President Trump proposed an 80% tariff cut on China ahead of the Geneva talks, raising hopes of easing trade tensions as global markets responded positively.
As reported by Sky News, Mr Trump has proposed an 80% cut in US-China trade tariffs, ahead of crucial economic talks between Washington and Beijing.
Switzerland will host a prominent meeting this week, as officials from both continents seek to ease the most severe strain of their trade conflict. Both countries face not just internal challenges but also the risk of further destabilizing the global economic landscape.
US-China trade talks set to address 80% tariff cut
Following a trade deal with the UK, President Trump wrote on Truth Social, “80% tariff on China seems appropriate! The decision is now in Scott Bessent’s hands.”
Scott Bessent, US Treasury Secretary, will be the one to make the final decision as he heads the US team at the Geneva talks.
After several rounds of tariff hikes, the outcome is awaited, with current duties at 125% on US imports to China and 145% on Chinese goods entering the US. The severity of the tariffs creates an effective trade embargo between the two nations.
The announcement of trade talks in Switzerland this week has raised optimism in global markets, driving up the dollar and stocks as investors hope for easing trade tensions. The concern for investors goes beyond increasing prices to include the potential disruption of supply chains.
Amid trade war fears, the US economy contracted in the first quarter of the year. The US central bank has also paused interest rate cuts, arguing that the tariffs imposed by the Trump administration on imports would boost inflation.
China’s economic moves as trade war talks approach
China’s official data does not reflect significant strain. However, surveys indicate a sharp decline in factory orders. The central bank’s move on May 7 to cut interest rates and decrease reserve requirements highlighted the country’s ongoing difficulties.
The Chinese delegation in Geneva is led by Vice Premier He Lifeng. He’s a well-regarded negotiator with an international reputation.
Commerce Ministry stance on US-China trade talks
Regarding the chances for progress, a spokesperson from the commerce ministry remarked,
“The Chinese side carefully evaluated the information from the US side and decided to agree to have contact with the US side after fully considering global expectations, Chinese interests and calls from US businesses and consumers.”
UK Prime Minister’s views on UK-US trade deal
British PM Keir Starmer described the UK-US agreement as “fantastic, historic” during an address at the Jaguar Land Rover plant in Solihull.
Mr Starmer added,
“I know people along the way were urging me to walk away, to descend in a different kind of relationship. We didn’t. “We did the hard yards. We stayed in the room. I’m really pleased to say to the workforce here and through them to the country, how important I think this deal is.”
John Denton’s views on the UK-US trade agreement
John Denton, Secretary General of the International Chamber of Commerce, stated,
“The reality is that US tariffs on UK exports remain significantly higher than they were at the start of the year.”
