President Trump proposed reducing tariffs on Chinese goods from 145% to 80% ahead of high-level trade talks between the U.S. and China. This move aims to de-escalate the ongoing trade war.
Top U.S. and Chinese trade officials are scheduled to meet in Switzerland for the first major discussions since the trade war began. The meeting involves Treasury chief Scott Bessent and U.S. Trade Representative Jamieson Greer.
The current tariff levels are 145% on Chinese imports to the U.S. and 125% on U.S. imports to China, imposed as retaliatory measures. The 145% tariff has been described as effectively an embargo on trade between the two countries.
Trump's desire to lower tariffs creates a tension between his aims: generating tariff revenue and securing deals to increase market access for U.S. goods, which often necessitates lower tariffs. His strategy of isolating China is also complicated by existing tariffs on other trade partners.