Trump suggests possible tariff relief for China amid new talks

U.S. President Donald Trump, on Friday, May 9, 2025, signaled that American tariffs on Chinese goods may be reduced.

This comes as high-level trade talks between the two largest global economies are set to take place.

Referring to recently imposed tariffs of up to 145% on Chinese imports since his return to office, Trump remarked, “You can’t get any higher.

“It’s at 145, so we know it’s coming down.”

These remarks were made during an event announcing a new tariff agreement with the United Kingdom.

It marked the first such bilateral deal since Trump’s widespread tariff imposition began in April.

This weekend’s scheduled meeting in Switzerland between top American and Chinese trade officials is seen as the clearest indication so far that both nations are willing to deescalate a trade war.

This trade war has supposedly caused significant disruption in global financial markets.

Trump described the planned discussions as “a very friendly meeting,” emphasizing that both sides aim to approach negotiations “in an elegant way.”

From Beijing, China’s Vice Foreign Minister Hua Chunying also struck a positive tone.

He expressed full confidence in the Chinese government’s ability to manage the trade situation with the U.S.

According to Dan Wang, a political risk analyst at the Eurasia Group, officials in both capitals are feeling the strain of mounting economic pressures.

She noted that recent signals point toward a potential “transactional de-escalation.”

The announcement of these trade talks earlier this week was widely welcomed as a critical initial move toward easing bilateral tensions.

However, experts caution that the discussions are just the beginning of what is likely to be a prolonged negotiation process.

Former U.S. trade negotiator Stephen Olson warned that the structural tensions between the U.S. and China are deep-rooted and unlikely to be resolved quickly.

He also suggested that any immediate tariff reductions resulting from these discussions would likely be minor.

Initial discussions will be led by U.S. Treasury Secretary Scott Bessent and China’s Vice Premier and chief economic policymaker, He Lifeng.

However, Olson stressed that any comprehensive trade deal would ultimately require the active involvement of both President Trump and President Xi Jinping.

Eswar Prasad, a former head of the International Monetary Fund’s China division, echoed this cautious sentiment.

He pointed out that even if the newly imposed U.S. tariffs were lifted, major challenges would remain.

In his view, the most realistic outcome might be a modest reduction in the sharply increased tariffs.

However, according to him, that would still leave substantial trade barriers and other restrictive measures in place.

Economic data released Friday revealed a more than 20% year-on-year drop in China’s exports to the U.S. for April.

Despite this, China’s overall exports grew by a stronger-than-expected 8.1%, suggesting some resilience in its broader trade performance.

These upcoming U.S.-China discussions are scheduled just two days after the U.K. secured a landmark tariff deal with the Trump administration.

The agreement includes a reduction in import duties on a selection of British automobiles and allows certain quantities of steel and aluminum into the U.S. without tariffs.

It also provides relief for several other key British industries affected by the recent wave of American tariffs introduced since Trump took office in January.

This U.K. deal may set a precedent as other nations race to reach similar agreements with Washington before the full brunt of U.S. import taxes comes into effect next month.

In April, Trump announced a series of “reciprocal tariffs” targeting dozens of countries.

Although he temporarily suspended their enforcement for 90 days to allow time for negotiations.

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