BEIJING, CHINA — As high-level trade discussions between the United States and China approach, US President Donald Trump has suggested a potential reduction in tariffs on Chinese goods.
“You can’t get any higher. It’s at 145, so we know it’s coming down,” Trump stated, referring to the recently imposed import taxes on China, which reached up to 145%. His comments were made during the unveiling of a tariffs agreement with the United Kingdom, the first such deal since the US implemented substantial levies on numerous nations in April.
The scheduled meeting in Switzerland this weekend is widely regarded as a significant step towards de-escalating the trade conflict that has destabilized global financial markets. “I think it’s a very friendly meeting. They look forward to doing it in an elegant way,” Trump remarked regarding the upcoming talks with China.
Echoing this sentiment, China’s Vice Foreign Minister Hua Chunying expressed confidence in Beijing’s ability to navigate trade issues with the US.
Dan Wang, from the political risk consultancy Eurasia Group, noted that both Washington and Beijing are facing “under growing economic pressure.” She added, “The recent signals from both sides suggest a transactional de-escalation is on the table.”
While the announcement of these talks has been welcomed as a crucial initial move towards easing tensions, analysts caution that the negotiations are likely to be protracted. “The systemic frictions between the US and China will not be resolved any time soon,” observed former US trade negotiator Stephen Olson. He also predicted that any tariff reductions resulting from the meeting would likely be “minor.”
US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng are set to lead the initial negotiations. However, “I think everyone recognises that any final deal will require the active engagement of both presidents,” Olson emphasized.
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Eswar Prasad, former head of the International Monetary Fund’s (IMF) China division, highlighted that even if the recently implemented tariffs were removed, significant challenges would remain. “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,” Prasad told Vivid Voice News.
Official figures released on Friday revealed a more than 20% year-on-year decline in China’s exports to the US in April. However, China’s overall exports exceeded expectations, rising by 8.1%.
The US-China trade talks are scheduled to occur just two days after the UK secured the first tariffs agreement with the Trump administration. This agreement involves the US reducing import taxes on specific British cars and allowing tariff-free entry for certain steel and aluminum products. It also provides relief for key UK industries from some of the tariffs introduced by Trump since his inauguration in January.
In April, Trump announced “reciprocal tariffs” on numerous countries, but subsequently granted a 90-day pause to allow for negotiations. Nations around the world are now actively pursuing similar agreements to avoid the impending implementation of these tariffs.
