Trump signals he's willing to lower China tariffs
President Trump on Friday signaled he's willing to dramatically lower U.S. tariffs on Chinese imports, underscoring how the Trump administration wants to find progress in a trade war stepped by the new president's "Liberation Day" announcement.
The tariffs have bit into Wall Street and raised fears the U.S. could enter a recession. They have also hit Trump hard when it comes to his approval ratings.
Trump on Friday said an 80 percent tariff on China seemed like the right number, which would dramatically drop the import tax on Beijing's goods from 145 percent.
“80% Tariff on China seems right! Up to Scott B,” Trump wrote in a post on Truth Social, giving a nod to Treasury Department Secretary Scott Bessent.
The U.S. and China are set to hold trade talks with Chinese officials in Switzerland this weekend, with Bessent leading the charge.
Trump announced reconciliation tariffs on goods from around the world in April, only to pause most of them as stock markets went into a freefall. He did impose a 10 percent tariff on most countries.
But Trump imposed much greater duties on China, which has been the target of his trade ire. Beijing has imposed higher tariffs in response on U.S. goods and has seemed to be in no hurry to negotiate a deal with the U.S., despite the harm the tariffs could cause its own economy.
Trump's approval rating for handling the economy has fallen well under 50 percent in most polls, aggravating Republicans even though there is more than a year to go before the midterm elections.
The administration has sought to turn the narrative around, and announced a trade framework on Thursday with the United Kingdom. But Trump has also pleaded for patience, while saying American children may only get two dolls rather than 20 for Christmas this year of goods are too expensive.
The looming talks between the U.S. and China have been welcomed by markets.
Germany's DAX gained 0.7 percent, Paris's CAC 40 went up by 0.8 percent and the UK's FTSE 100 added about 0.4 percent, according to The Associated Press. The futures for the S&P 500 and Dow Jones Industrial Average also rose, the AP reported.
“CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!” the president wrote in a separate Truth Social post Friday.
Trump has in recent days suggested duties on Chinese goods would be lowered.
“Right now, you can’t get any higher. It’s at 145 percent, so we know it’s coming down. I think we’re going to have a very good relationship,” Trump told reporters Thursday during a gaggle at the White House.
"I think we're going to have a good weekend with China. I think they have a lot to gain," he added. "I do think they have far more to gain than we do, in a sense."
On Wednesday, the president said a drop in tariffs will come with a requirement.
In remarks from the Oval Office, Trump reiterated that Chinese officials would need to help “stop fentanyl from coming in.” China is the primary source of chemicals used to produce the drug, according to the U.S. Drug Enforcement Administration.
Updated 9:30 a.m. EDT