- Trump hinted at reducing tariffs on Chinese goods to 80% ahead of high-stakes trade talks in Switzerland this weekend.
- China remains defiant, demanding the U.S. reverse export controls on chips while preparing its economy for a prolonged standoff.
- U.S. demands are vague, with calls for China to buy more American goods and crack down on fentanyl trafficking, but specifics remain unclear.
Ahead of trade talks in Switzerland this weekend, President Trump hinted at a major shift in U.S.-China trade policy, suggesting tariffs on Chinese goods — currently as high as 245% — could be slashed to 80%. “80% tariff on China seems right! Up to Scott B,” Trump posted, referring to Treasury Secretary Scott Bessent, who’s set to lead the U.S. delegation.
This weekend marks the first high-level trade talks between the two nations since Trump’s return to the White House. But despite Trump’s optimism, China is holding firm. “If you say one thing and do another… China will never agree,” said He Yadong, a spokesperson for China’s Commerce Ministry, signaling Beijing’s tough stance heading into negotiations.
U.S. Tariffs Take a Toll, But China Prepares for a Long Game
As the tariff war drags on, U.S. consumers are feeling the pinch, with steep levies pushing up prices on Chinese imports. Meanwhile, China’s been shoring up its own economy, rolling out a $138 billion liquidity boost this week to cushion the blow.
“They’re ready to fight to the end,” said Wu Xinbo, director at Fudan University. “It’s clear the U.S. underestimated how prepared China was for this standoff.”
What’s on the Table? Unclear Demands and Lofty Expectations
While Trump’s calling for China to “open up,” the specifics remain murky. Analysts say the U.S. wants China to buy more American goods, curb fentanyl trafficking, and loosen export controls on tech components. But China’s top priority? Reversing those crippling U.S. chip sanctions.
“Trump says he wants China to open up, but beyond that, the strategy is unclear,” said Mary Lovely of the Peterson Institute. “China, on the other hand, has been very clear: rollback the export controls, especially on chips.”
