President Trump recently hinted at the possibility of an 80% tariff on Chinese imports in a post on Truth Social, sparking uncertainty among investors. The vague nature of his statement triggered confusion in financial markets, causing S&P 500 futures to slip from a 0.4% gain to just 0.1%.
In his post, Trump wrote, “Trump: 80% Tariff on China seems right! Up to Scott B,” referring to U.S. Treasury Secretary Scott Bessent. It’s unclear whether Trump is proposing an 80% tariff as a permanent measure, a temporary reduction from the current 145% rate, or if he’s delegating authority to Bessent to negotiate lower rates with China.
An 80% tariff would represent a sharp drop from the current 145% duties on many Chinese products, though it would still pose a significant trade barrier.
Since returning to the White House in January, Trump has raised tariffs on Chinese goods to 145%, building on levies implemented during his first term and under the Biden administration. In retaliation, China has imposed export restrictions on rare earth minerals and hiked tariffs on U.S. goods to 125%, including extra duties on items like soybeans and liquefied natural gas.
To ease tensions, Treasury Secretary Bessent and U.S. chief trade negotiator Jamieson Greer are scheduled to meet with China’s top economic official, He Lifeng, in Switzerland. According to Trump administration officials, these meetings are seen as an opportunity to begin de-escalating the trade conflict, with talks kicking off on Saturday.
Bloomberg reports suggest the administration is considering a major tariff rollback as part of these negotiations. Sources familiar with the planning say the U.S. aims to push tariffs below 60% as an initial move, a level they believe Beijing might be willing to match.
However, officials warn that the talks are likely to focus more on raising concerns than on hammering out immediate solutions. There’s no guarantee that any tariff reduction will happen in the short term.
Beyond tariffs, the U.S. is also seeking China’s cooperation in lifting export restrictions on rare earth elements. Progress has reportedly been made on the fentanyl issue, with additional discussions possibly planned to address Chinese exports of precursor chemicals used to make the drug.
In a separate Truth Social post, Trump called on China to open its markets to the U.S., writing, “CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!”
Speaking Thursday while outlining a U.S.-UK trade deal, Trump expressed optimism about the upcoming talks with China, telling reporters, “You can’t get any higher — it’s at 145%, so we know it’s coming down. I think we are going to have a good weekend with China.”
