Washington (AFP) – US President Donald Trump signaled on Friday that he could lower tariffs on Chinese imports, as the rival superpowers prepare for trade talks over the weekend. “80% Tariff on China seems right!” Trump wrote on his Truth Social platform, which would bring them down from 145 percent, with cumulative duties on some goods reaching a staggering 245 percent. He added that it was “Up to Scott B.”, referring to US Treasury Secretary Scott Bessent, who will confer with China’s Vice Premier He Lifeng this weekend in Geneva to try to cool the conflict roiling international markets.
In his post, Trump did not say if he thought 80 percent should be the final, definitive level for tariffs on Chinese goods if and when the trade war ends, or an interim status. In retaliation, China has slapped 125 percent levies on US goods. In another post, this time all in capital letters, Trump said “China should open up its market to USA — would be so good for them!!! Closed markets don’t work anymore!!!” Chinese official data on Friday showed that the country’s global exports rose in April despite the trade war. Experts said that the forecast-smashing 8.1-percent rise indicated that Beijing was re-routing trade to Southeast Asia to mitigate US tariffs while exports to the United States fell 17.6 percent.
“The global supply chain is being rerouted in real time,” Stephen Innes of SPI Asset Management wrote in a note. “The manufacturing juggernaut is diverting flow wherever the tariff pain isn’t,” he said. China has insisted its position that the United States must lift tariffs first remains “unchanged” and vowed to defend its interests. Bessent has said the meetings in Switzerland would focus on “de-escalation” — and not a “big trade deal”. Trump told reporters Thursday that he thought the Geneva talks would be “substantive,” and when asked if reducing the levies was a possibility, he said “it could be”.
Markets up – Trump’s Truth Social post came a day after he unveiled what he called a historic trade agreement with Britain, the first deal with any country since he unleashed a blitz of sweeping global tariffs last month. Trump said the British deal would be the first of many, and that he hoped difficult talks with the EU — as well as China — could soon produce results too. Several countries have lined up to hold talks with Washington to avert the worst of Trump’s duties, which range from 10 percent for many countries to the sky-high ones on China — Trump’s main target.
Major stock markets mostly rose Friday on growing optimism that tariff tensions will ease. US futures were up while European markets were all in the green after a mixed showing in Asia. The Frankfurt DAX index hit a record high before Trump’s social media post, recouping losses spurred by the US president’s April tariffs announcements. In the first trade deal since Trump’s blitz of sweeping global tariffs, Washington agreed to lower levies on British cars and lift them entirely on steel and aluminum. In return, Britain will open up markets to US beef and other farm products, but a 10 percent baseline levy on British goods remained intact.
© 2024 AFP
