Trump Signals Possible Easing of China Tariffs Ahead of Pivotal Trade Talks

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Trump Signals Possible Easing of China Tariffs Ahead of Pivotal Trade Talks

 

President Donald Trump has suggested that tariffs on Chinese imports may soon be reduced, offering a potential opening in a trade standoff that has strained relations between the world’s two largest economies. Speaking during an event to unveil a new tariff agreement with the United Kingdom, Trump said, “You can't get any higher. It's at 145, so we know it's coming down,” referring to the steep import taxes of up to 145% that his administration imposed on Chinese goods since his return to office.

 

The comment came as the United States and China prepare to restart trade negotiations this weekend in Switzerland. The meeting is seen as a major step toward de-escalating a prolonged trade conflict that has rattled global markets and created uncertainty for businesses around the world. “I think it's a very friendly meeting. They look forward to doing it in an elegant way,” Trump said, suggesting a more conciliatory tone than in previous confrontations with Beijing.

 

China’s Vice Foreign Minister Hua Chunying echoed that sentiment, saying her government has “full confidence” in its ability to manage trade disputes with the U.S. The talks will be led by U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng, the country's top economic policymaker. While both sides appear open to dialogue, experts warn that progress is likely to be slow.

 

Dan Wang, an analyst from the political risk consultancy Eurasia Group, told the BBC that “officials in both Washington and Beijing are under growing economic pressure.” She added that “the recent signals from both sides suggest a transactional de-escalation is on the table.”

 

Still, many experts remain cautious about what can realistically be achieved in the short term. Former U.S. trade negotiator Stephen Olson emphasized that the deeper, systemic issues between the two countries “will not be resolved any time soon.” While minor tariff reductions may come out of this round of talks, Olson believes that any significant breakthrough will require the personal involvement of both presidents. “I think everyone recognises that any final deal will require the active engagement of both presidents,” he said.

 

Even if some of the recently imposed tariffs are rolled back, the broader framework of trade barriers and restrictions is expected to remain. Eswar Prasad, former head of the International Monetary Fund’s China division, said, “A realistic goal is probably at best a pullback from the sky-high bilateral tariffs but that would still leave in place high tariff barriers and various other restrictions.”

 

Economic data released Friday underscores the impact of the tariffs. China’s exports to the U.S. in April dropped by more than 20% year-over-year. However, its total exports rose 8.1%, a better-than-expected result that indicates resilience in other markets.

 

The renewed talks come just days after the UK became the first country to sign a new tariff deal with the Trump administration. As part of the agreement, the U.S. will reduce taxes on a selection of British vehicles and permit some steel and aluminium imports tariff-free. The deal also extends relief to other major UK industries that were hit by Trump’s broad tariffs since he took office in January.

 

Countries across the globe are now racing to negotiate similar arrangements before Trump's sweeping “reciprocal tariffs” on dozens of nations take full effect. Initially announced in April, the tariffs were temporarily paused for 90 days to allow time for diplomatic discussions.

 

While the upcoming U.S.-China talks offer a glimmer of hope, most observers agree the path to resolving the broader trade war remains long and uncertain.

 

  Adapted by ASEAN Now from BBC  2025-05-10

 

 

[gargamon]

I could never have predicted Trump would back down. He's so good at negotiating. I do like the way he gives everything away before negotiations start. 

 

Wait, i won't make another prediction. I won't predict that Trump will reduce the tarrifs again.

 

It's no wonder most of his businesses ended in bankruptcy, except for the ones where he merely licensed his name so people could put it on buildings.

[Tug]

He was floating dropping his tariff trump tax to 80% but he’s flopped back to his 145% trump tax …….don’t hold your breath.i have a feeling he’s trying to wiggle out of his sielf inflected wound looking for that I fixed the problem that he created.I doubt the Chinese will give that to him easily.

[spidermike007]

A very weak negotiator will give away talking points before the negotiations start, that is the very definition of Trump, he's never been a good negotiator, nor a particularly good businessman, he knows how to steal money, and he knows how to grift, but that's about it. 

 

We all knew he would cave in, China is holding all the cards in this game. 

[gargamon]

Meanwhile, across the other pond:

[Eric Loh]

Like the boy who cry wolf, no sane person will believe anything he said. He lied about the UK deal which is not. No deal but concept of a deal and will take years to iron out a real deal. This China talk will not pivotal but a start point and will take years to conclude a proper trade agreement.

 

Trump is boxed and embarrassed by the fallout of his tariff war and time is running out. He is out of touch with reality and surrounded by secretaries  and neocons who are out doing themselves grovelling to him. He is out of touch with the real world and tone deaf to the people sufferings. For those who still support him, you are part of the problem in cratering the economy.