President Donald Trump is dangling the bait of cutting tariffs on China to 80%, a move that seems calculated to take some heat out of the ongoing trade war. The statement was made on Trump’s stomping ground, Truth Social, where he voiced his sentiments in simple terms: “80% Tariff on China seems right!”
Top U.S. brass, including Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, are locked and loaded for a significant powwow with their Chinese counterparts. This rendezvous in the neutral territory of Switzerland will mark the first high-level talks between the two nations since the President kicked off a trade war with tariffs that were as stiff as a prairie wind in winter.
The backdrop to these talks is a growing concern among U.S market watchers about the domino effect of these tariffs on everyday American pocketbooks. The stakes couldn’t be higher. No country has been hit harder by Trump’s trade war than China, the world’s largest exporter and second-largest economy. But American consumers are also feeling the pinch as prices and the supply of goods take a hit.
When Trump unveiled his “Liberation Day” tariffs on April 2, China responded in kind, a move that Trump saw as a showing of disrespect. The tariffs have been piling up ever since, like cordwood before a long, cold winter. U.S. tariffs against China now sit at a hefty 145%, with China’s tariffs on the U.S. standing at 125%.
The economic tango between these two nations is complex and fraught with potential stumbling blocks. However, this potential tariff cut could be the first step towards a detente. As we watch these talks unfold, let’s remember the human cost of these economic skirmishes and hope for a resolution that benefits all.