President Donald Trump on May 8 indicated that upcoming talks between the United States and China “could” result in cuts to the current tariffs imposed on the adversary.
“We’re going to see right now,” Trump said from the Oval Office in response to a question on whether Americans could expect a cut in the tariff rates.
“You can’t go any higher. It’s already at 145 [percent]. So we know it’s coming down. I think we’re gonna have a very good relationship.”
In other comments from the White House the same day, Trump signaled optimism on the outcome of the talks.
“I think we’re going to have a good weekend with China. I think they have a lot to gain. I do think they have far more to gain than we do, in a sense, but ... I think we’re going to have a very good weekend.”
The day prior, Trump had signaled that upcoming trade talks between top U.S. and Chinese officials in Switzerland on May 10 had been initiated by the Chinese after the rival was initially reluctant to begin such talks without concessions from the United States.
“They said we initiated? Well, I think they ought to go back and study their files,” Trump said in response to a White House reporter’s question during an unrelated event.
If the trade talks were indeed initiated by the Chinese, it represents a reversal from the communist nation’s previous position.
The unexpected announcement followed weeks of uncertainty as both sides remained entrenched.
The United States wanted trade talks while leaving the 145 percent tariffs in place.
Beijing initially said that slackening these tariffs was a precondition of any future dialogue between the two nations.
Trump said the United States is gaining from the period of slowed trade, referencing the decades-long trade deficit between the United States and China.
“We were losing hundreds of billions of dollars with China. Now, we’re essentially not doing business with China. Therefore, we’re saving hundreds of billions of dollars. Very simple,” Trump said.
Additionally, as a handful of costs on certain goods have risen since the imposition of the tariffs, most prominently on products such as strollers and car seats, which are overwhelmingly manufactured in China, the administration is also looking into possible tariff exemptions.
During a May 7 hearing before the House Financial Services Committee, Treasury Secretary Scott Bessent told Rep. Ayanna Presley (D-Mass.) that exemptions for tariffs on car seats, strollers, and other baby products are “under consideration.”
Bessent will meet with the lead Chinese economic representative, the Treasury Department said.
They represent the first senior-level trade talks between the two superpowers over the issue since Trump took office.
It’s the first move toward a slackening of the sky-high tariffs that the two economic superpowers have placed on each other.
The United States currently maintains tariffs of 145 percent on Chinese goods, while China has duties of 125 percent on U.S. goods.
“Economic security is national security, and President Donald J. Trump is leading the way both at home and abroad for a stronger, more prosperous America,” Bessent said in a statement.
“I look forward to productive talks as we work towards rebalancing the international economic system toward better serving the interests of the United States.”
“At President Trump’s direction, I am negotiating with countries to rebalance our trade relations to achieve reciprocity, open new markets, and protect America’s economic and national security,” Greer said.
“I look forward to having productive meetings with some of my counterparts as well as visiting with my team in Geneva, who all work diligently to advance U.S. interests on a range of multilateral issues.”
The announcement of talks signals a win for Trump on the issue, but reaching an agreement may still be a difficult task.
On May 7, Trump indicated that he also plans to use the talks as an opportunity to raise the case of Jimmy Lai, an ex-media mogul currently facing the prospect of life imprisonment pending the decision of a Hong Kong tribunal in a national security case.
Trump has called for the release of Lai in the past. Now, he’s indicating that he plans to use the trade talks as a platform to raise the issue again.
