In light of the upcoming China-U.S. negotiations, Trump expresses favor toward an 80% tariff on Chinese goods.
Fresh Take:
In a surprising move, US President Donald Trump has floated an 80% tariff on Chinese goods—a significant drop from the existing 145% levy. This proposal was made ahead of crucial trade talks happening this weekend in Switzerland.
The Treasury Secretary, Scott Bessent, and the Chief trade negotiator, Jamieson Greer, are set to meet with China's economic czar He Lifeng in an attempt to cool down the ongoing trade war between the world's economic heavyweights.
These negotiations could mark a crucial step towards resolving a bitter trade standoff that's wrapping up global supply chains. When asked about the source of Trump's 80% figure, White House spokeswoman Karoline Leavitt stated, "The president tossed around that number, and we'll see what happens this weekend."
Trump emphasized on social media, "80% tariff on China seems right. Up to Scott B," hinting at his intention for the trade chief to discuss the matter further. However, Leavitt clarified that a unilateral lowering of tariffs from the US side isn't on the cards without concessions from China.
Moreover, China is sending a top security official to these talks, indicating the importance of the fentanyl trafficking issue to the negotiations and the broader US-China relationship. Trump has linked fentanyl issues with trade disputes, citing the substance as the rationale for initially imposing punitive import taxes on goods from China, Canada, and Mexico earlier this year.
China's embassy in Washington, DC, hasn't responded to requests for comment yet. "China should open up its market to USA—it would be so good for them," Trump tweeted in capital letters.
Though the 80% tariff is significantly lower than the current 145%, it's still remarkably high and might not be well-received by China considering the punishing trade embargo already in place.
Investors have been on edge due to the ongoing trade saga, with worries about the potential impact of tariff rates on financial markets. Stocks dipped modestly after Trump's social media post, while the dollar weakened against a basket of major currencies.
Since taking office in January, Trump has imposed steep tariffs on Chinese goods, pushing them up to 145%. In response, China imposed export controls on rare earth elements vital for US manufacturers and raised tariffs on US goods.
The forthcoming talks in Geneva are seen as a move towards defusing tensions with China. The White House's National Economic Council director, Kevin Hassett, described the meeting as "very promising" and expressed hope for positive developments in the negotiations.
A decrease in tariff rates, especially for China, has been a major focus for investors, as market volatility persists due to Trump's aggressive trade policies. The proposed 80% tariff, if agreed upon, would likely shake up the US economy and change the dynamics of the global trade landscape.
- The national economic heavyweights, the United States and China, are bracing for crucial trade talks this weekend in Switzerland, aiming to resolve a bitter standoff that's been wrapping up global supply chains.
- Treasury Secretary Scott Bessent and Chief trade negotiator Jamieson Greer, along with China's economic czar He Lifeng, are expected to discuss tariffs, with President Donald Trump recently floating an 80% tariff on Chinese goods.
- Trump's proposal of an 80% tariff on Chinese goods, a significant drop from the existing 145% levy, has been met with anticipation and concern by the world of business, finance, and AI industries.
- Tariffs have been a focal point in the US-China trade war, with China sending a top security official to the talks in Geneva, indicating the importance of the fentanyl trafficking issue and the broader US-China relationship.
- CNBC reported that the upcoming talks are seen as a move towards defusing tensions with China, with the White House's National Economic Council director, Kevin Hassett, describing the meeting as "very promising" and expressing hope for positive developments in the negotiations.
- The tariff rates have been a significant concern for investors, with worries about their potential impact on the financial markets. Stocks dipped modestly after Trump's social media post, while the dollar weakened against a basket of major currencies.
- If the 80% tariff, proposed by Trump, is agreed upon, it would likely shake up the US economy and change the dynamics of the global trade landscape, potentially leading to a significant shift in the world of business, trade, and finance.
