Trump hints at tariff relief for China—What's behind the shift?
What's the story
US President Donald Trump has hinted at a possible decrease in import duties on Chinese goods. The statement comes as trade officials from the US and China prepare for discussions. "You can't get any higher. It's at 145, so we know it's coming down," said Trump, referring to the new import taxes of up to 145% imposed on China since his return to the White House.
Trade talks
Trade officials from US, China prepare for discussions
The upcoming meeting in Switzerland is viewed as a major step toward diffusing the trade war, which has affected global financial markets. "I think it's a very friendly meeting. They look forward to doing it in an elegant way," Trump said about the talks with China. Chinese Vice Foreign Minister Hua Chunying also sounded optimistic about the talks, saying Beijing has "full confidence" in its ability to manage trade issues with the US.
Trade negotiations
Analysts predict lengthy negotiations ahead
Despite the optimism surrounding the talks, analysts have warned that these discussions may be lengthy. Stephen Olson, a former US trade negotiator, said, "The systemic frictions between the US and China will not be resolved any time soon." He also predicted that any reductions in tariffs resulting from this meeting are likely to be "minor." The initial negotiations will be led by US Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng.
Trade challenges
Experts highlight ongoing trade issues between US, China
Even if Trump's new tariffs are lifted, major problems would still exist between the two countries. Eswar Prasad, former head of the International Monetary Fund (IMF) China division, said, "A realistic goal is probably at best a pullback from the sky-high bilateral tariffs, but that would still leave in place high tariff barriers and various other restrictions."
Trade impact
China's exports to US fall amid global trade tensions
Recent data revealed China's exports to the US dropped by over 20% from a year ago. However, its overall exports increased by an unexpected 8.1%. The upcoming China-US talks come just two days after the UK became the first country to strike a tariffs deal with the Trump administration. Under the new agreement, the US agreed to cut import taxes on certain British cars and allow some steel and aluminum into the country tariff-free.