In a potential step toward easing the ongoing US-China trade war, President Donald Trump has suggested the possibility of cutting tariffs on Chinese goods. Posting on social media Friday, Trump commented, “80% Tariff on China seems right,” signaling openness to renegotiation ahead of scheduled trade talks in Switzerland.
The high-stakes meetings come amid mounting economic pressures on both sides. Currently, the US has imposed tariffs as high as 145% on Chinese imports, while China has retaliated with tariffs of up to 125% on some American goods. These escalating measures have significantly dampened trade between the world’s two largest economies.
Despite strained relations, Chinese Vice Foreign Minister Hua Chunying expressed confidence, stating that Beijing has "full confidence" in handling its trade relationship with Washington.
New trade figures released Friday show China's exports to the US plunged more than 20% year-over-year in April. However, China's overall exports performed better than expected, rising 8.1%, hinting at some economic resilience.
Dan Wang, an analyst from the Eurasia Group, told the BBC that both Washington and Beijing are facing "growing economic pressure," and recent remarks from both sides suggest "transactional de-escalation" may be possible.
While the announcement of talks has been widely seen as a positive development, experts warn that deep-rooted economic tensions won't be resolved quickly. Former US trade negotiator Stephen Olson noted that although the talks may yield some tariff relief, any concessions are likely to be minor in the short term.
Initial discussions will be led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. However, Olson emphasized that a meaningful breakthrough would require direct involvement from both President Trump and President Xi Jinping.
Eswar Prasad, former head of the IMF's China division, echoed these sentiments, saying that even if recent tariffs were rolled back, significant trade barriers and structural issues would remain.
"A realistic goal is probably at best a pullback from the sky-high bilateral tariffs," Prasad said, "but that would still leave in place high tariff barriers and various other restrictions."
As the new round of US-China trade talks begins, both sides appear cautiously optimistic but aware that real progress will require time, compromise, and high-level political commitment.
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