Trump Hints at Major Tariff Reduction Ahead of High-Level US-China Trade Talks in Geneva

Report by Safarti Tarjuman Business Desk

U.S. President Donald Trump has proposed a significant reduction in tariffs on Chinese imports, suggesting a cut from 145% to 80% just days before critical trade negotiations with China. The remarks, posted on his social media account Friday morning, signal a potential shift in the administration’s aggressive trade stance.

The upcoming discussions mark the first high-level engagement between the two economic giants since the United States imposed sweeping tariffs on Chinese goods in April. These tariffs, described by Trump as “liberation day” measures, triggered immediate retaliation from Beijing.

Despite the mounting tariffs, China’s overall exports showed resilience in April, growing by 8.1% year-on-year. However, exports to the U.S. fell by 17.6%, reflecting the direct impact of the trade war. Economists noted that the full effects of the tariffs may not yet be visible due to delayed shipments and transshipment through third countries. Zhiwei Zhang, chief economist at Pinpoint Asset Management, expects trade data to weaken in the coming months as the impact of the new tariffs becomes clearer.

Speaking to reporters on Friday, Trump expressed optimism about the upcoming negotiations. He acknowledged the high tariff rates and hinted at a downward adjustment, stating that “it’s coming down.” The former president added that he believes the talks will be “substantive” and that a stronger U.S.-China relationship is within reach. The Chinese delegation will be led by Vice Premier He Lifeng, making this meeting the highest-level contact since the escalation of the trade conflict.

China has responded with cautious confidence. Deputy Foreign Minister Hua Chunying stated that Beijing has no intention of engaging in a trade war but remains fully prepared to handle the consequences. She emphasized that the Chinese people have the resilience to endure economic challenges and that ordinary Americans are already experiencing the toll of rising prices due to the tariffs.

In a related development, the United Kingdom finalized a new trade agreement with the United States this week, which includes tariff reductions on British automobiles and lifted duties on steel and aluminum. In return, the UK will expand access to its market for American agricultural goods. The Geneva meeting is expected to be a turning point in U.S.-China trade relations, with global markets closely watching for any breakthrough that could ease tensions and restore confidence in international trade flows.