Trump Hints at Easing Trade Stance

President Donald Trump suggested Friday that the United States might be willing to lower tariffs on goods imported from China, a move that could signal a de-escalation in the ongoing trade war between the two economic giants.

The shift in tone comes as high-level talks are scheduled to take place in Switzerland this weekend. Treasury Secretary Scott Bessent and U.S. trade Representative Jamieson Greer are expected to meet with Chinese negotiators to discuss potential pathways forward.

Trump’s Truth Social Posts Offer Mixed Signals

Despite the potential for eased tensions, Trump’s recent posts on his social media platform, Truth Social, presented a somewhat complex picture. In one post, he mentioned:

80% Tariff on China seems right! Up to Scott B.

Though,the fact that he mentioned a specific percentage,and then said “up to Scott B,” suggests that he might potentially be open to negotiation.

In a separate post, Trump emphasized the need for China to open its markets to the U.S.,stating:

WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!

Background: Escalating Trade War

The U.S. and China, which engage in billions of dollars worth of trade annually, have been locked in a tense trade dispute. The conflict intensified last month when the U.S. imposed tariffs as high as 145% on chinese imports. China responded with a 125% levy on American goods.

China Claims U.S. Initiated Talks

The upcoming meeting in Switzerland marks the first publicly acknowledged discussion between the two countries as the trade war began. A spokesperson for the Embassy of the People’s Republic of China in the U.S. indicated that the U.S. requested the meeting.

According to the spokesperson:

After carefully assessing the U.S.messages, China decided to agree to hold discussions. The talks are being held at the request of the U.S. side.

This statement contrasts with previous reports. Last month, President Trump claimed to have spoken with Chinese President Xi Jinping about trade, but a Chinese Ministry of Commerce spokesperson denied that any negotiations had taken place.

Economic Impact and market Reaction

A resolution to the trade war would be welcomed by businesses that rely on Chinese imports and by American consumers who have already seen price increases. Wall Street is also closely monitoring the situation, as the trade war has contributed to market volatility.

adam Crisafulli, an equities analyst at Vital Knowledge, noted that investors are largely dismissing Trump’s “80% tariff” post as a negotiating tactic.

However, Crisafulli added:

That said, media reports in the last 12-18 hours have suggested U.S. tariffs could be cut to 50%-60% as soon as Sun night/Mon morning following the Geneva negotiations, and if that doesn’t happen (or if thay are only reduced to 80%), there would likely be a meaningful negative reaction in markets Mon morning.

UBS Global Wealth Management suggests that tariffs may eventually settle around 34%, citing a more constructive tone and the start of high-level talks as indicators of potential de-escalation.

Ulrike Hoffmann-Burchardi, chief investment officer at UBS Global Wealth Management, stated:

We also think that U.S.-China tariffs will ultimately settle around 34%, as a more constructive tone and the start of high-level talks in Switzerland suggest both sides are open to de-escalation and further negotiation.

Stocks rose on Friday following Trump’s suggestion that a new tariff rate on Chinese goods could be considered.

Adding to the positive sentiment,Trump announced a trade deal with the United Kingdom on thursday,raising hopes for potential agreements with other major trading partners.

Trump also posted on Truth Social:

Many Trade Deals in the hopper, all good (GREAT!) ones!

FAQ: U.S.-China Trade relations

• Q: What is a tariff? A: A tax imposed on imported goods.
• Q: Why are the U.S. and China in a trade war? A: Due to disputes over trade practices and intellectual property.
• Q: What are the potential outcomes of the talks in Switzerland? A: Possible tariff reductions and improved trade relations.