Former U.S. President Donald Trump has proposed a new tariff rate of 80% on Chinese imports, offering his first concrete suggestion of a revised trade policy as officials prepare for high-stakes negotiations in Geneva this weekend.
Trump’s comments come amid growing tensions between the world’s two largest economies and follow a series of aggressive trade measures taken since he returned to office in January.
Trump Sets New Benchmark for Tariff Reductions
In a post on Truth Social, Trump for the first time named a specific figure for potential tariffs on Chinese goods: “80% tariff on China seems right. Up to Scott B,” he said, referring to U.S. Treasury Secretary Scott Bessent.
The remark represents a possible softening from the current 145% levies in place and could signal a path toward compromise in upcoming trade talks.
“China should open up its market to USA — would be so good for them!!! Closed markets don’t work anymore!!!” Trump added, reiterating his call for greater market access for American companies.
Trade Talks Aim to Defuse Escalating Tensions
This weekend, Bessent and U.S. chief trade negotiator Jamieson Greer are set to meet China’s top economic official, He Lifeng, in Switzerland. Officials describe the Geneva talks as a potential starting point for de-escalating what has become an intensifying trade war.
Since retaking office, Trump has escalated the tariff war, pushing levies on Chinese imports up to 145%, building on trade restrictions from his first term as well as those continued under the Biden administration.
The increased tariffs have rattled global markets, and Trump’s recent post caused brief but noticeable market volatility. U.S. stock futures dipped before recovering slightly, while the dollar and European equities also saw momentary declines.
China’s Retaliatory Measures Worsen Trade Friction
In response to U.S. tariffs, China has launched its own countermeasures. Beijing has raised its tariffs on American imports to as high as 125% and implemented specific curbs on U.S. goods such as soybeans and liquefied natural gas. It has also introduced export restrictions on rare earth elements crucial to global technology supply chains.
These tit-for-tat moves have heightened fears of a prolonged economic standoff that could ripple through global trade networks.
Uncertainty Clouds Market Outlook
Although Trump’s 80% tariff suggestion may be interpreted as a potential opening for negotiation, there is little clarity on how much flexibility either side is willing to show in Geneva.
The Trump administration has painted the talks as a pivotal opportunity to ease hostilities and build toward a new framework for economic engagement. However, any progress will likely require concessions from both nations on sensitive trade issues.
While the world watches for signs of a breakthrough, Trump’s post has set the tone heading into the weekend. Whether his “80% seems right” idea will anchor the negotiations—or derail them—remains to be seen.