President Donald Trump has expressed openness to significantly reducing the U.S. tariff rate on China, currently set at a staggering 145%. In a recent Truth Social post, he suggested an 80% tariff might be appropriate, indicating a potential shift in negotiations ahead of talks scheduled in Geneva between U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, alongside their Chinese counterparts.
In remarks from the Oval Office, Trump noted the impossibility of raising tariffs further, hinting at the potential for cuts. During his presidency, Trump escalated tariffs on China, starting with a 20% levy due to issues surrounding fentanyl flows, followed by a sharp increase to 125%. An 80% tariff, while still high, represents a significant reduction from the current rate.
Despite these negotiations, Trump’s general approach to tariffs remains aggressive, as seen in his recent announcement of an agreement with the U.K. This deal aims to boost U.S. exports of beef and agricultural products but lacks specific commitments from the U.K. regarding increased imports.
Current tariffs, such as the 25% duties on steel, aluminum, and auto imports, continue to impact business confidence negatively. Reports indicate that the anticipated economic effects of the tariffs may not be materializing; for instance, China’s exports reportedly increased as goods are funneled through Southeast Asian countries before reaching the U.S., suggesting that the tariffs may not be achieving their intended objectives. Overall, while discussions about trade deals are frequent, tangible progress appears limited.
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