In a notable shift in trade rhetoric, U.S. President Donald Trump hinted on Thursday that tariffs on Chinese imports may be reduced as top negotiators from the United States and China prepare for their first round of trade talks this year.
Speaking at an event at the White House to announce a new trade agreement with the UK, Trump addressed the recently imposed 145% tariffs on Chinese goods, suggesting a rollback is likely. “You can’t get any higher. It’s at 145, so we know it’s coming down,” he remarked.
The comments arrive just ahead of a key diplomatic meeting scheduled this weekend in Switzerland between U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. The talks signal a potential thaw in the escalating trade tensions that have rattled global markets since Trump resumed office in January.
“I think it’s a very friendly meeting. They look forward to doing it in an elegant way,” Trump said of the upcoming dialogue.
Chinese Vice Foreign Minister Hua Chunying echoed a similarly optimistic tone, stating that Beijing holds “full confidence” in managing its trade relationship with Washington.
According to Dan Wang of the Eurasia Group, the renewed engagement indicates both nations are facing mounting economic pressures. “The recent signals from both sides suggest a transactional de-escalation is on the table,” Wang told the BBC.
While the announcement has been welcomed as a positive step toward easing tensions, experts warn that any real progress will require time and political will. Stephen Olson, a former U.S. trade negotiator, noted, “The systemic frictions between the U.S. and China will not be resolved any time soon.”
Initial outcomes from the Switzerland talks are expected to be modest. “Any tariff cuts would likely be symbolic, with more significant decisions reserved for future discussions involving the presidents themselves,” Olson added.
Eswar Prasad, former head of the IMF’s China division, stated that even if the latest tariffs are reduced, significant barriers would remain. “A realistic goal is probably at best a pullback from the sky-high bilateral tariffs,” he said.
Meanwhile, new data from China’s customs office revealed that exports to the U.S. fell by over 20% year-on-year in April, though overall exports grew by 8.1%, exceeding expectations.
The bilateral meeting will follow closely on the heels of the U.S.-UK trade deal, the first agreement under the revived Trump administration’s tariff overhaul. The pact reduces tariffs on select British automobiles and allows limited volumes of UK steel and aluminum to enter the U.S. duty-free.
With steep new tariffs looming next month, countries worldwide are rushing to secure similar deals during the temporary 90-day pause granted by the U.S. administration to encourage diplomatic negotiations.