Trump Suggests 80% Levies on China as U.S. Enters Early Talks

What Happened?

The Trump administration looks to build off momentum gained following its recent ‘breakthrough’ deal to reduce trade levies with the U.K.

Over the weekend, Treasury Secretary Scott Bessent led key tariff talks with Chinese leaders in Switzerland as the two sides search for answers to help restore their trade relationship.

Many remain concerned over suggestions President Donald Trump has made regarding reduced but high levies maintained on China.

In a post on Truth Social, President Trump said, '80% Tariff on China seems right! Up to Scott B.'

While an 80% levy will be a reduction from the 145% imposed, it could still be prohibitive to trade, according to reports.

It is also much more than the 10% baseline tariff in the U.S.-U.K. trade agreement announced Thursday.

'CHINA SHOULD OPEN UP ITS MARKET TO USA,' Trump added in a separate post Friday. 'WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!'

Why it Matters

The U.S.-U.K. trade deal marked the first bilateral agreement unveiled since Trump imposed sweeping tariffs.

It will significantly expand access for U.S. agricultural products, creating a $5 billion opportunity for U.S. farmers, ranchers, and producers.

Tariffs will also be cut on the first 100,000 U.K. vehicles imported into the U.S. annually by U.K. car manufacturers to 10%.

Current 25% tariffs imposed globally on steel and aluminum imports could also be effectively modified.

As for China, Friday’s comments appear to signal a shift for the Trump administration in how they plan to negotiate a 'fair' trade agreement.

Chinese President Xi Jinping recently told Russia's Vladimir Putin that their two countries should be ‘friends of steel’ to unite forces against a new world order against U.S. domination.

It's a move to 'decisively' counter the influence of the U.S., according to Reuters.

Xi's participation came as the U.S. had pressured Moscow to end its ongoing war in Ukraine.

Putin and Xi’s cooperation to unify could change the tone of how U.S. officials plan to execute any trade agreements with China.

It puts at risk efforts aimed at de-escalating their ongoing trade war.

How it Affects You

Trump still intends to focus on encouraging future rate cuts in the U.S. following the Fed's latest decision amid increased uncertainty.

The U.K. deal is one of many that Trump aims to get done to restore U.S. consumer confidence.

He expects U.S. negotiators to have a 'good weekend' wrapped up with China.

Any unscripted hostile interaction between the parties could reportedly be seen as an unacceptable loss of face for Xi.