US President Donald Trump on Friday proposed an 80% tariff on Chinese imports, presenting his first concrete alternative to the high 145% tariffs now levied against Beijing. The proposal is made just before a key round of talks seeking to ease tensions in trade relations between the world’s two largest economies.
On Truth Social, Trump wrote, “China should open up its market to USA would be so good for them!!! Closed markets don’t work anymore!!!” Then he added, “80% tariff on China seems right. Up to Scott B,” referencing Treasury Secretary Scott Bessent.
Bessent, accompanied by US trade envoy Jamieson Greer, will meet Chinese Vice Premier He Lifeng in Geneva this weekend. The top-level talks are regarded as a possible turning point in a trade dispute that has involved tit-for-tat tariff increases and increasing economic pressure on both sides.
Since coming back to office in January, Trump has sharply raised tariffs on Chinese imports, expanding on actions of both his previous term and those continued by President Biden. In reaction, China has increased tariffs on US products to 125% and added extra levies on pivotal US exports such as soybeans and liquefied natural gas. It has also curtailed the export of rare earth elements essential for high-tech industries.
Trump’s surprise reference to an 80% tariff provoked short-term market jitters. US stock futures fell initially, and the dollar dropped modestly in European markets before rebounding.
The next Geneva talks have been hailed by officials as a tentative step toward de-escalating the trade war. But with Trump doubling down on protectionism, it is far from clear that any meaningful breakthrough will occur in the near term.
