Since January, U.S. President Donald Trump has raised tariffs on Chinese imports to a steep 145%, adding to previous duties, including those introduced during the Biden administration. On Friday, Trump floated a new figure, saying an 80% tariff on Chinese goods “seems right,” marking the first time he has publicly suggested a specific alternative to the current rate just before critical talks this weekend.
U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet Chinese economic chief He Lifeng in Switzerland for discussions aimed at easing the ongoing trade war between the world’s two largest economies. The talks could represent an initial step toward resolving a conflict that has already disrupted global supply chains.
According to a source familiar with the talks, China is also sending a senior public security official to the Geneva meeting — a sign that fentanyl trafficking, a pressing issue in the U.S.-China relationship, will be on the agenda. Trump has linked his tough trade measures to the fentanyl crisis, using it as part of the justification for imposing stiff import tariffs not just on China but also on Canada and Mexico earlier this year.
China’s embassy in Washington declined to comment immediately.
In a social media post written in all caps, Trump declared, “CHINA SHOULD OPEN UP ITS MARKET TO USA – WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!” Moments later, he added, “80% TARIFF ON CHINA SEEMS RIGHT. UP TO SCOTT B.”
China’s foreign ministry has sharply criticized what it describes as U.S. bullying and unsustainable economic tactics, insisting that China strongly opposes Washington’s current trade approach.
Although Trump has recently signaled openness to lowering tariff rates, this is the first time he has floated a concrete figure. While an 80% tariff is roughly half the current 145% rate, it remains extremely high — even exceeding the 60% tariff Trump proposed during his presidential campaign last year. It’s unclear how China will react, especially as Treasury Secretary Bessent has described the current U.S.-China trade climate as effectively an embargo.
For investors, the outcome of these talks — and where tariff levels ultimately settle — is critical. Financial markets have been shaken by months of volatility stemming from Trump’s aggressive and often unpredictable trade policies.
Markets React to Trump’s Comments
U.S. stocks, which had recovered much of their ground since the record highs of mid-February, slipped modestly on Friday following Trump’s tariff remarks. The U.S. dollar also weakened against a basket of major currencies.
Since taking office in January, Trump has raised tariffs on Chinese goods to 145%, adding to earlier duties from his first term and those put in place under President Biden. In response, China has restricted exports of certain rare earth elements vital to U.S. industries and raised its own tariffs on U.S. goods to 125%, including additional levies on products like soybeans and liquefied natural gas.
Trump administration officials have described the upcoming Geneva talks as a step toward reducing tensions. Kevin Hassett, the White House’s chief economic adviser and director of the National Economic Council, told CNBC the meeting looks “very promising” from the U.S. perspective.
“We’re seeing a lot of mutual respect,” Hassett said. “There’s collegiality and the outlines of potential positive outcomes.”
Still, Trump’s tariff push is widely seen as increasing risks for the U.S. economy, with fears that it will drive up prices for American consumers and businesses, reignite inflation, and weaken demand — which has so far helped sustain the strong job market. Public approval of Trump’s trade policies has already been slipping as Americans brace for higher costs on everything from clothes and electronics to toys and other Chinese-made goods.
Meanwhile, China’s government is working to prevent factory closures, bankruptcies, and job losses as its manufacturers scramble to find alternatives to the U.S. market.
Swiss Vice President Guy Parmelin, who also serves as Switzerland’s economic minister and is hosting the talks, expressed optimism after separate bilateral meetings with the U.S. and Chinese delegations in Geneva.
“It’s already a success,” Parmelin told reporters. “The two sides are talking. If a road map can emerge and they agree to keep the discussions going, that will ease tensions.”
Parmelin added that “everything is possible,” including the mutual suspension of tariffs during the negotiations, which could extend into Sunday or even Monday. “That’s up to the parties,” he said.
