President Donald Trump on Friday signaled that he may cut tariffs on China from 145 percent to 80 percent ahead of a meeting between the White House and top Chinese regime officials over the weekend.
The meeting is scheduled to take place in Switzerland, marking the first talks between the two major economies, coming weeks after Trump announced 145 percent duties on Chinese imports and Beijing responded with 125 percent tariffs on U.S. imports.
Trump previously stated that he wouldn’t lower the tariffs on Chinese products to hold trade talks. But on Thursday, when he was asked about the tariffs, the president said he may lower the rates if the negotiations over the weekend are productive.
“We’re going to see,” Trump told reporters. “Right now, you can’t get any higher. It’s at 145 [percent], so we know it’s coming down.”
As part of his economic agenda, Trump has said that he wants large amounts of tariff revenues to offset his income tax cuts, and he also wants deals to increase market access for U.S. goods that would likely require lower tariffs. His aides have said publicly that the administration wants to isolate China via tariffs and other means.
When he announced the 145 percent import tax on China, he paused higher tariffs on major trading partners such as the European Union, Japan, Taiwan, Vietnam, and more for 90 days as negotiations played out.
However, Trump kept intact a 10 percent baseline tariff on nearly every nation in the world. Duties of 25 percent on Mexico and Canada, as well as 25 percent tariffs on autos and steel, also remain in effect.
The United Kingdom became the first country to strike a deal with the administration on tariffs. Trump announced the deal on Thursday in the Oval Office with British Prime Minister Keir Starmer joining by phone.
Trump said the U.S.–UK trade deal calls for lower tariffs on luxury brands such as Rolls-Royce and others.
“We took it from 25 to 10 on Rolls-Royce because Rolls-Royce is not going to be built here. I wouldn’t even ask them to do that. You know, it’s a very special car and it’s a very limited number, too,” the president said in the White House.
“The UK will reduce or eliminate numerous non-tariff barriers that unfairly discriminated against American products,” Trump said. “This is now turning out to be, really, a great deal for both countries.”
Wall Street closed higher on Thursday following the announcement, with the Dow Jones Industrial Average increasing by 254 points, or 0.62 percent. The broader S&P 500 gained 0.58 percent, and the tech-focused Nasdaq Composite increased by more than 1 percent.
The Associated Press contributed to this report.
