The Trump administration is considering a significant reduction in tariffs during weekend talks with China, aiming to de-escalate trade tensions and alleviate economic strain.
The negotiations, scheduled to begin Saturday in Geneva, will be led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
According to sources familiar with the preparations, the US seeks to reduce tariffs below 60% as an initial step, a move they believe China might reciprocate. If successful, the cuts could be implemented as early as next week.
However, the discussions are expected to be exploratory, focusing on airing grievances rather than formulating solutions, sources cautioned. The situation remains uncertain, and there is no guarantee that tariff levels will decrease in the short term.
The US aims to secure the removal of China’s export restrictions on rare earth elements vital for manufacturing magnets. Progress has also been reported regarding fentanyl, with talks potentially addressing the reduction of Chinese exports of opioid ingredients linked to rising overdose deaths.
While both the US Treasury and Trade Representative Jamieson Greer, who will also participate, declined to comment, White House spokesperson Kush Desai reiterated that the administration’s goal is to promote President Trump’s “America First” economic agenda. Desai dismissed speculation about specific tariff targets.
Currently, US tariffs on Chinese imports reach up to 145%, significantly raising consumer costs and straining economic relations. Even if tariffs are cut in half, they would remain historically high, posing challenges for American consumers.
US stocks rose following President Trump’s optimistic comments on Thursday, signaling investor confidence in potential progress. Trump emphasized the need to lower tariffs, stating, “You can’t get any higher — it’s at 145%, so we know it’s coming down.”
Commerce Secretary Howard Lutnick expressed similar sentiments, suggesting that reducing tariffs would pave the way for more substantial trade agreements. Meanwhile, Asian markets also showed gains, reflecting cautious optimism.
China remains cautious, urging the US to cancel unilateral tariffs while maintaining that any reduction should start from the US side. Song Hong, a senior economist in Beijing, noted that if the US reduces tariffs to 60% or lower, China would likely respond in kind.
However, experts warn that even significant tariff cuts might not completely alleviate economic pain. Wendy Cutler, a former US trade negotiator, noted that even halved tariffs would still be substantially higher than pre-trade war levels.
Despite some hopes for progress, experts caution that the weekend talks are just the beginning of a lengthy negotiation process. Scott Kennedy of the Center for Strategic and International Studies stressed that the talks are a “constructive small step in a 10,000-mile journey.”
Both sides remain wary of each other’s intentions. While China seeks a rollback to pre-April tariff levels, the US remains skeptical of China’s commitment to structural reforms.
Domestic political pressures on both leaders—Trump’s promise to reduce the trade deficit and Xi Jinping’s need to demonstrate strength—add complexity to the negotiations.
Boluwatife Enome
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