Trump Administration Plans Major Tariff Cut on China, Admits White South African Refugees, and Proposes Tax Hike for High Earners

President Trump plans to reduce tariffs on Chinese imports from 145% to 80% to ease trade tensions ahead of talks in Switzerland. The administration is also set to admit 54 white South African refugees, Afrikaners, marking an exception to its refugee policy. Additionally, Trump proposes a tax increase for Americans earning over $2.5 million annually, aiming to protect social programs like Medicaid. This proposal partially reverses the 2017 tax cuts and includes measures like taxing stock buybacks and closing the carried interest loophole, facing skepticism from some Republicans.

Trump Considers Reducing China Tariffs to 80%

President Trump has publicly floated the idea of cutting tariffs on Chinese goods from 145% to 80%, ahead of a weekend meeting between U.S. and Chinese trade officials in Switzerland. The move is aimed at deescalating the ongoing trade war between the two largest global economies.

“80% Tariff on China seems right! Up to Scott B,” Trump wrote on his social media platform Truth Social on Friday, referring to Treasury Secretary Scott Bessent, who is leading the U.S. delegation in the Geneva talks. Trump added, “CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!”

The current 145% tariff includes a 20% surcharge tied to Trump’s claim that China has failed to curb the export of chemicals used in fentanyl production. That portion of the tariff is not expected to be addressed in the upcoming talks.

Despite earlier statements that he would not lower tariffs to initiate negotiations, Trump has recently softened his stance. “Right now, you can’t get any higher. It’s at 145, so we know it’s coming down,” he said during an Oval Office appearance on Thursday.

According to reports, the administration is considering reducing the tariff rate to below 60% as a first step, hoping for reciprocal action from Beijing. Treasury Secretary Bessent has described the current tariff levels as “unsustainable,” effectively acting as an embargo on trade between the two nations.

The talks in Geneva will include Bessent, U.S. Trade Representative Jamieson Greer, and China’s Vice Premier for Economic Policy He Lifeng. The administration hopes the discussions will pave the way for a broader trade agreement.

White South African Refugees to Arrive in U.S.

In a rare exception to its broader refugee policy, the Trump administration is preparing to admit the first group of white South African refugees, specifically Afrikaners, into the United States. The group of 54 individuals is expected to arrive at Washington Dulles International Airport on Monday, May 12.

The move follows a February executive order signed by President Trump directing the Departments of State and Homeland Security to prioritize humanitarian relief for Afrikaners in South Africa who are “victims of unjust racial discrimination.” The order also cut U.S. aid to South Africa.

The Afrikaners have been granted P1 refugee status, typically reserved for individuals referred by designated entities due to urgent resettlement needs. The process for their admission has been unusually swift, with interviews and approvals completed in under three months—far faster than the typical 18 to 24 months for most refugee cases.

States that have agreed to resettle the Afrikaners include Colorado, Massachusetts, Michigan, Minnesota, Washington, West Virginia, California, Idaho, Montana, North Carolina, Nevada, and New York. Some of the refugees reportedly have family ties in the U.S.

President Trump, along with Secretary of State Marco Rubio and South African-born adviser Elon Musk, has been vocal about what they describe as the persecution of white farmers in South Africa. Trump has accused the South African government of “doing some terrible things,” including land confiscation without compensation.

Critics have pointed out the irony of prioritizing a relatively privileged group while refugee admissions for other populations remain suspended. “Thousands of refugees from across the globe remain stranded in limbo despite being fully vetted and approved for travel,” said Timothy Young, a spokesman for Global Refuge, a resettlement agency.

The administration has mobilized resources from the Department of Health and Human Services to support the Afrikaners’ resettlement, including housing, food, clothing, and prepaid phones.

Trump Proposes Tax Increase on High Earners

In a notable policy shift, President Trump has asked House Speaker Mike Johnson to include a tax increase on high-income Americans in the upcoming fiscal package. The proposal would create a new top income bracket for individuals earning more than $2.5 million annually, taxing income above that threshold at 39.6%.

This would partially reverse a key provision of the 2017 Tax Cuts and Jobs Act, which lowered the top income tax rate from 39.6% to 37%. The current top bracket begins at $626,350 for individuals.

Trump’s proposal has surprised many within his party. While he previously dismissed the idea of a “millionaires tax” as “very disruptive,” he now appears to view it as a way to protect social programs like Medicaid from budget cuts. Republicans are currently grappling with how to offset the cost of extending the 2017 tax cuts, and some have proposed slashing Medicaid spending.

The president’s plan also includes other populist-leaning tax measures, such as increasing the tax on stock buybacks and eliminating the carried interest loophole that benefits private equity and hedge fund managers.

Senator Mike Crapo (R-ID), who chairs the Senate Finance Committee, expressed skepticism. “So right now, I’m not excited about the proposal,” he said in an interview. “But if the president weighs in in favor of it, then that’s going to be a big factor that we have to take into consideration as well.”

The proposal comes as House Republicans prepare to release the first draft of their tax bill, which must balance competing demands from fiscal conservatives and lawmakers representing high-tax states.

References

• Trump floats cutting China tariffs to 80% ahead of meeting as he looks to deescalate trade war
• First Afrikaners granted refugee status due to arrive in U.S.
• Trump tariffs live updates: Trump floats cutting slashing China tariffs to 80% with talks ahead