U.S. Signals Shift with 80% Tariff Proposal Ahead of China Meeting

On May 9, 2025, President Donald Trump announced on Truth Social that an 80% tariff on Chinese imports “seems appropriate,” marking his first public proposal to reduce the current 145% tariff.

This announcement comes just before high-level trade talks in Switzerland, where Treasury Secretary Scott Bessent and chief negotiator Jamieson Greer will meet with Chinese economic leader He Lifeng.

The US imposed the 145% tariff earlier this year, escalating a trade conflict that began with previous rounds of tariffs under both Trump and Biden. China responded with a 125% tariff on US goods and targeted exports like soybeans and liquefied natural gas.

These moves caused a 60% drop in US imports from China and led to price increases in the US. Analysts warn that inflation could reach 4% by year-end due to the conflict.

Despite the trade recalibration, China reported an 8.1% rise in exports in April, far exceeding forecasts. However, sales to the US fell by 21%. China’s exporters shifted to other markets, but economists expect export growth to slow if the US market remains restricted.

Trump’s 80% proposal, though a major reduction, still keeps tariffs at historically high levels. Some US officials and business leaders argue that a 50% tariff is necessary to restore normal trade.

The Geneva meeting aims to ease tensions, but both sides face pressure from slowing economies and rising costs. The talks represent a tentative step toward resolving a dispute that has disrupted global supply chains and markets.

Any breakthrough will likely take time, as both governments remain cautious and seek to protect their own interests. The outcome will shape trade flows and business decisions for months to come.