As China exports plummet, Donald Trump open to lowering tariff cut to 80%

President Donald Trump has shown that he is open to reducing tariffs on Chinese goods from the current 145% to 80%. This would be a big drop, but it is still causing disagreement. The announcement was made as trade talks between the U.S. and China continue, with the next round set to happen in Switzerland this weekend.

Trump shared this proposal on his Truth Social account (founded by NBC) and said the final decision will be up to Treasury Secretary Scott Bessent, who is leading the U.S. team in the negotiations. The suggested 80 percent tariff comes after a time of rising trade tensions.

The timing of Trump’s announcement is important because it comes as Chinese exports to the U.S. have dropped sharply. Data from China’s General Administration of Customs shows that exports to the U.S. fell by 21 percent in April. While China has been able to send more goods to other places, like Southeast Asia, the European Union, Latin America, and Africa, this shift shows how the high U.S. tariffs are disrupting global trade.

Trump may drop tariffs on China to 80 percent

Last month, Trump introduced a 10 percent basic tariff on almost all foreign imports. Later, he added matching tariffs for many countries, though these are currently on hold while talks are happening. China, however, was not included in this initial deal, leading to a back-and-forth increase in tariffs that eventually reached the current 145 percent on many Chinese goods.

Even though an 80 percent tariff would be much lower than the current rate, it is still causing debate. An 80 percent tariff could hurt trade badly, possibly leading to higher prices and shortages of some products in the U.S. This is especially worrying for big American companies that depend heavily on Chinese imports, such as Apple, Walmart, Tesla, and Nike.

Their costs could go up a lot if no trade deal is reached. Trade between the U.S. and China could stop completely if tariffs went above 65 percent. Global markets reacted well to Trump’s hint that tariffs might be lowered, with the rise of stock markets in Europe. However, whether 80 percent is the final offer or just a starting point for negotiations is still unclear. This uncertainty makes people wonder how stable U.S.-China trade relations will be in the long run and how this will affect the world economy.

The talks in Switzerland are not expected to produce a full trade deal right away. Instead, the goal is to set the stage for future discussions. The U.S. Trade Representative has said they hope to stabilize the relationship. However, for these talks to succeed, both sides will need to compromise.

China recently took new steps just before the Switzerland meeting to make the situation more complicated. The country announced a crackdown on the illegal smuggling of important minerals and said it would tighten controls on exporting certain strategic resources. This follows earlier moves where China restricted exports of some materials to the U.S. as a response to tariffs.