Trump proposes 80% China tariff ahead of trade talks

In a recent announcement, US President Donald Trump expressed his intention to reduce tariffs on goods imported from China, signaling a potential shift in the ongoing trade conflict between the two largest economies in the world. On social media, Trump stated, '80% Tariff on China seems right,' just ahead of crucial trade discussions scheduled to take place in Switzerland. China's Vice Foreign Minister, Hua Chunying, conveyed a sense of optimism regarding the upcoming meetings, asserting that Beijing possesses 'full confidence' in its ability to navigate trade matters with the United States. Since April, Trump has imposed steep tariffs of 145% on various Chinese imports, which has sent shockwaves through financial markets and significantly decreased trade between the two nations. Recent statistics revealed that China's exports to the US plummeted by over 20% compared to the same month last year. Conversely, China's overall exports experienced a surprising increase of 8. 1%, exceeding expectations. Analysts suggest that both Washington and Beijing are feeling mounting economic pressure. Dan Wang, a political risk consultant from Eurasia Group, remarked to the BBC that recent signals from both sides indicate a willingness to de-escalate tensions. However, she cautioned that the negotiations are likely to be protracted. Stephen Olson, a former US trade negotiator, warned that the underlying issues between the US and China are unlikely to be resolved swiftly. He predicted that any tariff reductions resulting from the upcoming discussions would be minimal. The initial negotiations will be spearheaded by US Treasury Secretary Scott Bessent and China's Vice Premier and economic leader, He Lifeng. Olson emphasized that it is widely recognized that any final agreement will necessitate the active involvement of both presidents. Another trade expert, Eswar Prasad, who previously led the International Monetary Fund's China division, stated that even if Trump's newly imposed tariffs were lifted, significant challenges would remain. He suggested that a realistic objective would be to reduce the excessively high bilateral tariffs, but this would still leave substantial tariff barriers and various restrictions in place. On social media, Trump urged China to 'open up its market' to American goods, asserting that any tariff reductions would be contingent upon Scott B's negotiations. In earlier comments, he expressed his expectation for a 'very friendly' meeting. The discussions between China and the US are set to occur just two days after the UK became the first country to reach a trade agreement with the Trump administration. Under this agreement, the US has agreed to lower import taxes on a specific number of British cars and permit certain steel and aluminum products to enter the country without tariffs, in exchange for increased access to US beef and other exports. Countries worldwide are racing to establish similar agreements before steep US import taxes are implemented next month. In April, Trump announced what he termed 'reciprocal tariffs' on numerous countries but subsequently paused them for 90 days to allow those governments time to negotiate with his administration. American businesses are closely monitoring the developments in Switzerland. For instance, Wild Rye, a women's outdoor clothing company based in Idaho, has manufacturing operations in China and has been severely impacted by the tariffs. The cost of shipping goods has surged dramatically, as the company's CEO, Cassie Abel, explained to the BBC's Today program. She revealed that a purchase order worth approximately $700,000 is now incurring costs of £1. 2 million in levies, a significant increase from the previous $200,000. Abel mentioned that she is now considering selling parts of her business to raise funds.