Trump Considers Reducing China Tariffs Amid US-UK Trade Talks, Uncertainty Persists

Former President Donald Trump announced a potential reduction of tariffs on Chinese imports from 145% to 80% ahead of U.S.-China trade talks in Geneva. The announcement, made on May 9, 2025, via Truth Social, comes amid mixed signals from the White House and ongoing negotiations with the UK. Treasury Secretary Scott Bessent leads the U.S. delegation in talks with Chinese Vice Premier He Lifeng. China demands tariff rollbacks for meaningful negotiations. The Trump administration's trade policy remains unpredictable, affecting financial markets and international relations.

Trump Signals Tariff Cut Ahead of Geneva Talks

On Friday, May 9, 2025, President Trump posted on Truth Social: “80% Tariff on China seems right! Up to Scott B,” referring to Treasury Secretary Scott Bessent, who is leading the U.S. delegation in trade talks with Chinese Vice Premier He Lifeng in Geneva. The talks, scheduled for the weekend, mark the first high-level face-to-face negotiations between the two countries since Trump returned to office in January.

Trump’s statement follows a week of mixed messaging. On Wednesday, he told reporters he would not lower tariffs to entice China to the negotiating table. However, by Thursday, he had shifted tone, saying, “Right now it’s at 145%. You can’t get any higher than that, so we know it’s coming down.” The White House initially dismissed reports of a tariff cut as “baseless speculation,” but Trump’s own comments have since confirmed that reductions are under consideration.

China Responds Cautiously

China has demanded a rollback of U.S. tariffs as a precondition for meaningful negotiations. According to NPR, Chinese imports currently face cumulative tariffs of up to 245%, while U.S. goods entering China are taxed at rates as high as 125%. A spokesperson for China’s Commerce Ministry emphasized that the U.S. must “face up to the serious negative impact that unilateral tariff measures have on itself and the world.”

Despite the rhetoric, Chinese exporters are reportedly preparing to resume shipments to the U.S., signaling cautious optimism. Reuters reported that several Chinese firms, including suppliers to major American retailers like Walmart, are readying goods for export in anticipation of a potential thaw in trade relations.

Treasury Secretary Bessent Takes the Lead

Treasury Secretary Scott Bessent, along with U.S. Trade Representative Jamieson Greer, is representing the U.S. in the Geneva talks. Bessent has indicated that the administration is open to a “substantial reduction” in tariffs, as well as addressing non-tariff barriers, currency manipulation, and industrial subsidies.

In a Fox News interview earlier in the week, Bessent downplayed the formality of the meeting, saying, “I was going to be in Switzerland. Turns out the Chinese team is traveling through Europe, and they will be in Switzerland also, so we will meet on Saturday and Sunday.” This casual framing contrasts with the high stakes of the negotiations, which involve the world’s two largest economies and a bilateral trade relationship worth over $660 billion annually.

Trade Deal with the UK Adds to the Diplomatic Juggling

Trump’s announcement on China comes just one day after he unveiled a preliminary trade agreement with the United Kingdom. The deal, described by Trump as “full and comprehensive,” includes tariff reductions on British car imports and the elimination of duties on steel and aluminum. In return, the UK will lift restrictions on U.S. ethanol and increase its beef import quota from 1,000 to 13,000 metric tons.

However, the agreement is not yet finalized, and a 10% baseline tariff will remain on most British goods. Trump has insisted that this minimum tariff will apply to all countries, regardless of individual trade deals. “You are going to always have a baseline,” he said during a signing event in the Oval Office.

The UK deal follows weeks of tension, including Trump’s threat to impose a 100% tariff on foreign-made films—a move that alarmed the British film industry and prompted renewed negotiations. British Prime Minister Keir Starmer participated in the announcement via speakerphone, but many details remain unresolved.

Uncertainty Clouds Trade Policy

Despite the flurry of activity, the Trump administration’s trade policy remains marked by unpredictability. Trump’s public statements often precede or contradict official positions. For instance, after suggesting a tariff cut on China, he later told reporters he had given negotiators a target number but refused to disclose it.

This pattern has created confusion among allies and adversaries alike. A White House spokesperson initially denied any plans to reduce tariffs on China, only for Trump to publicly contradict that stance within 24 hours. Similarly, the UK trade deal was announced as complete, only for officials to later clarify that it was still under negotiation.

The lack of clarity has also affected financial markets. While Wall Street showed modest gains on Friday in anticipation of the Geneva talks, analysts remain cautious. The Federal Reserve, citing economic uncertainty, held interest rates steady this week. Fed Chair Jerome Powell remarked, “It’s really not at all clear what it is we should do,” echoing the sentiment of many business leaders and consumers.

Broader Geopolitical Context

The U.S.-China talks are taking place against a backdrop of shifting global alliances. On Thursday, Chinese President Xi Jinping met with Russian President Vladimir Putin in Moscow, where they emphasized their commitment to conducting trade in rubles and yuan to reduce reliance on the U.S. dollar. Meanwhile, Trump has framed his trade agenda as a model for other countries, suggesting that the UK deal could serve as a template for future agreements.

However, the administration’s approach has been criticized as improvisational. Trump’s decision-making process—such as announcing a 100% tariff on foreign films after a conversation with actor Jon Voight—has raised concerns about the coherence and stability of U.S. trade policy.

References

• Trump floats cutting China tariffs ahead of talks this weekend
• Trump tariffs live updates: Trump floats slashing China tariffs to 80% with 'many' deals 'in the hopper'
• Ahead of trade talks, Trump says an 80% tariff on China 'seems right'
• President Trump suggests 80% China tariff; Newark mayor Ras Baraka arrested at an ICE detention facility
• Tariffs in the second Trump administration - Wikipedia
• As US, China begin trade talks in Geneva, Trump's tariff hammer looks less mighty than he claims