Trump Indicates Willingness to Reduce Tariffs on China Ahead of Discussions in Switzerland
The president's social media post may indicate progress that could alleviate concerns for consumers, businesses, and the markets.
TroibNews 
On Friday, President Donald Trump opened the door to potentially reducing the steep 145 percent tariffs imposed on China.
In a post on Truth Social, Trump indicated he might lower these tariffs, which he had introduced in April, to 80 percent. However, he emphasized that the final decision rests with “Scott B.,” a reference to Treasury Secretary Scott Bessent, who recently traveled to Switzerland and is set to meet with Chinese trade representatives over the weekend.
“80% Tariff on China seems right! Up to Scott B.,” the president wrote in his post.
Setting tariffs at 80 percent would still represent a significant barrier for most companies engaging in trade between the U.S. and China, yet it could suggest a shift that might alleviate concerns among consumers, businesses, and investors.
“It’s not the practical effect. It is about demonstrating progress,” stated an individual familiar with the discussions, who was granted anonymity to share insights from private conversations. “Markets may react to the scent of progress with China trade.”
Importantly, the president's post indicates that he has entrusted Bessent to negotiate a reduction in tariffs on his behalf.
“He is giving the keys to Bessent,” the source noted.
Any tangible outcomes from these negotiations would be interpreted as a significant advancement toward easing tensions with China, the world’s second-largest economy and the U.S.'s third-largest trading partner.
Establishing a baseline rapport between Bessent and Vice Premier He Lifeng, China's lead negotiator for economic and trade matters with the U.S., would also be viewed as a positive development in de-escalating the ongoing trade war between the nations.
This post follows Trump’s firm “no” to the idea of reducing tariffs to entice China back to the negotiating table just two days earlier. Although the president had previously shown some willingness to decrease tariffs, he insisted that China must make concessions in return.
Alejandro Jose Martinez for TROIB News
In a post on Truth Social, Trump indicated he might lower these tariffs, which he had introduced in April, to 80 percent. However, he emphasized that the final decision rests with “Scott B.,” a reference to Treasury Secretary Scott Bessent, who recently traveled to Switzerland and is set to meet with Chinese trade representatives over the weekend.
“80% Tariff on China seems right! Up to Scott B.,” the president wrote in his post.
Setting tariffs at 80 percent would still represent a significant barrier for most companies engaging in trade between the U.S. and China, yet it could suggest a shift that might alleviate concerns among consumers, businesses, and investors.
“It’s not the practical effect. It is about demonstrating progress,” stated an individual familiar with the discussions, who was granted anonymity to share insights from private conversations. “Markets may react to the scent of progress with China trade.”
Importantly, the president's post indicates that he has entrusted Bessent to negotiate a reduction in tariffs on his behalf.
“He is giving the keys to Bessent,” the source noted.
Any tangible outcomes from these negotiations would be interpreted as a significant advancement toward easing tensions with China, the world’s second-largest economy and the U.S.'s third-largest trading partner.
Establishing a baseline rapport between Bessent and Vice Premier He Lifeng, China's lead negotiator for economic and trade matters with the U.S., would also be viewed as a positive development in de-escalating the ongoing trade war between the nations.
This post follows Trump’s firm “no” to the idea of reducing tariffs to entice China back to the negotiating table just two days earlier. Although the president had previously shown some willingness to decrease tariffs, he insisted that China must make concessions in return.
Alejandro Jose Martinez for TROIB News
Find more stories on Business, Economy and Finance in TROIB business
