On the eve of US-China trade talks, Trump proposes an 80% tariff reduction, while the White House insists on concessions from both sides.

Senior officials from the US and China will meet in Geneva, Switzerland, from May 10 to 11 to discuss tariffs, rare earth export restrictions, and issues related to fentanyl. President Trump proposed reducing tariffs on Chinese goods from as high as 145% to 80%, but the White House emphasized that tariffs will not be lowered unilaterally unless China makes concessions. The talks will be led by US Treasury Secretary Mnuchin and Chinese Vice Premier He Lifeng. Meanwhile, the US and the UK have reached a limited trade agreement, maintaining a 10% baseline tariff, highlighting the Trump administration's push for reciprocal tariff policies.

Trump's 80% Tariff Proposal Draws Attention

On May 9, U.S. President Trump posted on the social platform Truth Social, stating, "An 80% tariff on China seems reasonable," and indicated that this matter would be decided by Treasury Secretary Scott Bessent. This statement has sparked speculation about a potential shift in the upcoming U.S.-China trade talks.

Currently, U.S. tariffs on Chinese goods can reach as high as 145%, with cumulative rates on some products even hitting 245%. Although the proposed 80% rate is still high, it represents a significant reduction from current levels. Nevertheless, the White House was quick to clarify that this figure is merely an idea proposed by the President and not an established policy.

White House: No One-Sided Concessions

White House spokesperson Karoline Leavitt clearly stated at a press conference that President Trump's stance has not changed, and the U.S. will not unilaterally lower tariffs without concessions from China. She noted, "We need to see concessions from China, which is a fundamental principle of bilateral negotiations."

Leavitt added that Trump has full confidence in Bessent and maintains close contact with him. She emphasized that Trump adheres to a 10% baseline tariff principle in all trade negotiations, a stance reflected in agreements with other countries.

Swiss Meeting Agenda and Topics

The talks are scheduled for May 10-11 in Geneva, Switzerland, marking the first high-level in-person trade talks between the U.S. and China since Trump's return to the White House. The U.S. delegation is led by Treasury Secretary Bessent and Chief Trade Negotiator Jamieson Greer, while the Chinese side is represented by Vice Premier He Lifeng.

According to multiple reports, the discussion topics include:

Tariff adjustments and reciprocal concessions
Restrictions on rare earth exports
Issues regarding the flow of fentanyl precursors
Expansion of U.S. agricultural and energy exports

White House officials revealed that the U.S. hopes China will lift export restrictions on rare earths needed for manufacturing magnets and engage in separate talks on the fentanyl issue. China may propose increasing purchases of U.S. liquefied natural gas and agricultural products, similar to the "Phase One" agreement in 2019.

China's Stance and Meeting Approach

Although China has sent Vice Premier He Lifeng to attend the talks, indicating a certain level of importance, Reuters cited informed officials stating that China has positioned this meeting as a "meeting" rather than "high-level consultations," with the primary goal of understanding the U.S. bottom line and demands rather than reaching an immediate agreement.

Chinese officials privately expressed dissatisfaction with a letter from the U.S. on the fentanyl issue sent in late April, considering its tone "arrogant and rude." Additionally, internal disagreements over the selection of meeting officials temporarily affected the negotiation arrangements.

However, as China's major trading partners have begun negotiations with the U.S., Beijing is concerned about being isolated, coupled with pressure on the domestic manufacturing sector, prompting China to decide to re-engage with the U.S.

U.S.-UK Trade Agreement: 10% Baseline Tariff as the New Standard

On the eve of the U.S.-China talks, the Trump administration announced a limited trade agreement with the UK. According to the agreement:

Most UK goods will be subject to a 10% baseline tariff
U.S. tariffs on UK car exports will be reduced
UK tariffs on U.S. ethanol and beef imports will be reduced to zero
Both sides agreed to establish a stable pharmaceutical supply chain
U.S. tariffs on UK steel and aluminum products will be reduced to zero

The White House stated that this agreement reflects the Trump administration's push for a "reciprocal tariff" policy, with the 10% baseline rate becoming the starting point for future trade negotiations. Trump emphasized that countries with large trade surpluses may still face higher tariffs.

On the eve of US-China trade talks, Trump proposes an 80% tariff reduction, while the White House insists on concessions from both sides.

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