Trump Proposes Reducing China Tariffs to 80% Ahead of Key Talks in Switzerland

Trump Proposes Reducing China Tariffs to 80% Ahead of Key Talks in Switzerland

President Donald Trump made headlines by announcing his willingness to lower import tariffs on Chinese goods to 80%, just days before critical trade negotiations in Switzerland this weekend. However, this rate remains higher than what investors and businesses had hoped for.

In a post on Truth Social, Trump wrote: “An 80% tariff on China seems fair! Sent to Scott B.” — referring to U.S. Treasury Secretary Scott Bessent, who will join the negotiations with the Chinese delegation.

The proposed 80% tariff represents a significant cut from the current 145% rate imposed on many Chinese products. Still, it remains a high tariff that could hinder trade, and it is much higher than the 10% rate under the recently announced U.S.-UK trade deal on Thursday.

It is unclear whether Trump intends to maintain the 80% tariff in the long term or sees it as a strategic move in the negotiation process.

In another post, Trump emphasized: “Many trade deals are being prepared, all GOOD (even GREAT!).”

China is seen as Trump’s biggest challenge in his efforts to reshape the global trade environment. While many countries have temporarily suspended tariffs previously imposed by the U.S., tensions between Washington and Beijing have continued to escalate, leading both sides to impose tariffs over 100% on each other’s goods.

According to the U.S. Trade Representative’s office, in 2024, the U.S. exported $143.5 billion worth of goods to China, while imports from China reached $438.9 billion.

Also on Friday morning, Trump posted on Truth Social: “CHINA SHOULD OPEN ITS MARKET TO THE U.S. – IT WOULD BE GREAT FOR THEM!!! CLOSED MARKETS ARE OUTDATED!!!”

Nevertheless, observers believe that the upcoming talks in Switzerland are unlikely to result in a comprehensive trade agreement. U.S. Trade Representative Jamieson Greer said on Thursday’s “Power Lunch” program that he hoped the dialogue would bring stability — laying the groundwork for further progress.

Recent shipping data shows a sharp decline in goods from China to the U.S., raising concerns about rising prices or even supply shortages in the coming weeks.

Trump’s latest statements on China tariffs mark a notable shift, as just on Wednesday, he had asserted he would not lower tariffs to bring China back to the negotiating table.

Short-Term Positive Impact:

Reducing tariffs from 145% to 80% signals a softer trade stance by Trump → investors may feel more optimistic, expecting eased U.S.-China tensions and improved trade prospects, especially for exporters and companies dependent on Chinese supply chains.

Sectors likely to benefit: technology, semiconductors, retail, logistics, electronics manufacturing, automotive.

✅ If the market believes negotiations will proceed positively and further tariff reductions are possible → stock prices could rise on expectations of lower import costs and a more stable supply chain.

Potential Negative (or Limited) Impact:

However, 80% is still a high tariff compared to previous levels, not low enough to fully restore normal trade → investors may feel disappointed, having hoped for rates closer to 10-20%.

Some investors worry this is just a trial balloon strategy by Trump, not a genuine policy shift → market sentiment remains cautious, with limited capital deployment.

If negotiations fail or China responds negatively, trade tensions could escalate again, and the market might reverse course.

In Summary:

✅ Short-term: the market may react mildly positive, especially for export/import and manufacturing-related stocks.
⚠️ Medium & long-term: still depends on negotiation outcomes and future policies → market gains may not be sustainable.

👉 If you’re investing in stocks, closely monitor negotiation updates, China’s reactions, and U.S. policy moves — especially in tariff-sensitive industries!

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