Trump floats major tariff cut on China ahead of high-stakes trade talks in Geneva

President Donald Trump on Friday signaled a potential shift in the ongoing U.S.-China trade standoff, suggesting a substantial reduction in tariffs on Chinese goods from the current 145 percent to 80 percent, just days before a critical diplomatic meeting in Geneva aimed at easing economic tensions between the two global powers.

The proposal, announced in a post on Trump’s Truth Social account, marks the first public indication that the administration is prepared to scale back its most aggressive economic pressure on Beijing since the so-called “Liberation Day” tariffs were imposed last month. “80% Tariff on China seems right!” Trump wrote, while clarifying that the final decision rests with Treasury Secretary Scott Bessent.

Bessent, along with U.S. Trade Representative Jamieson Greer, arrived in Geneva late Friday for weekend negotiations with Chinese officials. The meetings are widely seen as a pivotal step in halting the downward spiral of U.S.-China trade relations, which have strained global markets and upended supply chains.

In a separate online post Friday morning, Trump urged China to “open up its market,” warning that “closed markets don’t work anymore.” His comments come amid new data revealing that Chinese exports to the U.S. fell more than 20 percent year-over-year in April, while trade flows to Southeast Asia surged — a sign that exporters are seeking alternative buyers amid the tariff war.

Escalation and Possible Reset

The current 145 percent tariff on Chinese goods reflects multiple layers of duties introduced over recent months. An initial baseline of 20 percent was imposed last year in response to disputes over intellectual property and trade imbalances. That was followed by a dramatic hike — an additional 105 percent — targeting fentanyl-related imports and broader trade retaliation, bringing the total to historic highs.

In retaliation, China imposed a matching 125 percent tariff on U.S. imports, deepening the stalemate.

However, Trump’s remarks Thursday suggested a turning point may be near. “You can’t get any higher. It’s at 145, so we know it’s coming down,” he said, indicating optimism about the weekend’s talks. The president also referenced a newly signed trade deal with the United Kingdom — the first successful bilateral agreement since the tariff regime began — as a model for future arrangements.

Bessent Signals Room to Negotiate

Treasury Secretary Bessent has previously described the current tariff levels as “not sustainable,” and in recent days has emphasized the goal of “de-escalation” at the Geneva summit. His team’s strategy appears to hinge on using Trump’s suggested 80 percent rate as a negotiating floor, giving Washington flexibility to offer further reductions in exchange for Chinese concessions on market access and fentanyl control.

Chinese officials, for their part, have not publicly commented on the latest U.S. overture but are expected to bring their own proposals to the table, possibly tied to agricultural imports and technology restrictions.

Global Trade Ripple Effects

The international business community is closely watching the outcome of this weekend’s meetings. Since the tariffs took effect, global stock markets have seen increased volatility, and multinational companies have reported disruptions in their supply chains.

The recent U.S.-U.K. deal, under which the U.K. will lower tariffs to just 1.8 percent in return for American access to over $5 billion in trade opportunities, has raised hopes that a similar path might be forged with China — albeit under more complex circumstances.

While Trump has not laid out specific conditions for lowering tariffs beyond the 80 percent mark, analysts believe the administration is eager to reach at least a temporary framework for cooperation before the summer. “I think they [China] have far more to gain than we do,” Trump said Friday. “But both sides can win.”

The Geneva summit is scheduled to run through Sunday. Outcomes could range from a symbolic easing of tensions to the first concrete steps in rebalancing the two countries’ trade relationship — and by extension, calming an increasingly jittery global economy.