The Trump administration is considering slashing tariffs in weekend talks with China to ease tensions and alleviate the economic pain that both sides have begun to feel.
The negotiations are scheduled to take place in Geneva on Saturday, with US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng presiding over the talks. According to informed sources, the US side has set a goal of reducing tariffs to below 60% as the first step, and they believe that the Chinese side may be willing to take the same measures. They said that progress was made during the two-day negotiations, and these reduction measures could be implemented as early as next week. The negotiations are scheduled to take place in Geneva on Saturday, with US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng presiding over the talks.
US President Donald Trump said he believes the trade talks with China that start this weekend will make tangible progress, predicting that Beijing will be willing to make concessions and indicating that if the negotiations gain momentum, he might consider reducing the punitive tariffs on China.
Trump told reporters in the Oval Office on Thursday as he announced a framework trade deal with the United Kingdom: “I think it’s going to be very substantial.”
U.S. Treasury Secretary Scott Benson and U.S. Trade Representative Jamison Greer will hold talks with Chinese Vice Premier He Lifeng on trade issues in Switzerland in the coming days. Trump said that if the negotiations go smoothly, he might consider lowering the 145% tariffs imposed on many Chinese goods.
“It’s possible,” Trump said in response to a question about the possibility. “I mean, we’ll see. It can’t go any higher now. It’s at 145%, so we know it’s going to come down. I think we’re going to have a very good relationship.”
Markets rose on Thursday, driven by optimism over the US-China trade talks and Trump’s statement on the UK issue. The S&P 500 index continued its upward trend, reaching a high point during the trading session, rising by about 1.5%, while US Treasuries, gold and safe-haven currencies lost momentum.
Trump said that positive trade news, along with the Republicans’ efforts to pass legislation to extend and expand its signature tax cuts, should be reasons for investors to be optimistic.
“This country is going to reach a tipping point. You better go out and buy stocks,” Trump said. “Now, let me tell you, this country is going to be like a rocket going straight up.”
However, negotiations with China to lower the punitive tariffs of both countries may become complicated.
People familiar with the matter who declined to be named said the talks were likely to be exploratory and more about expressing dissatisfaction than finalizing solutions to the many problems between the two sides. They said the situation was fluid, meaning it was uncertain whether tariffs would be reduced in the short term.
Insiders said that another key wish of the US is to ensure that China lifts its export restrictions on rare earths used to make magnets, as a series of industries are facing disruptions. Progress has also been made on the fentanyl issue. Insiders said that the two sides may soon hold separate negotiations on reducing China’s exports of ingredients used to make opioid drugs. In recent years, the number of deaths caused by opioid overdose has soared.
The U.S. Treasury Department and the office of U.S. Trade Representative Robert Lighthizer, who also participated in the negotiations with Bessen, both declined to comment. White House spokesman Kush Desai said in a statement: “The sole objective of the government in conducting these negotiations is to advance President Trump’s ‘America First’ economic agenda and achieve fair and reciprocal trade relations. Any discussion about ‘target’ tariff rates is unfounded speculation.”
Despite this, the president insisted that the final agreement reached would benefit the economies of both countries. “I think it’s good for both countries,” Trump continued. “I hope to see China open up.”
Trump said he also expected to ask China to help mediate the conflict between Ukraine and Russia.
