The US is considering slashing its tariffs on China's goods at trade talks this weekend, after President Trump's promised that the 145% rate was "coming down." On Friday morning, Trump posted on Truth Social: "80% Tariff on China seems right! Up to Scott B," referring to Treasury Secretary Scott Bessent.
Bloomberg reported earlier that a more dramatic cut would be a first step, made in hopes of a matching tariff reduction by China. The aim is to further deescalate the mounting trade war between the two countries, which threatens severe damage to the global economy — including to US businesses and consumers. Optimism for a shift in US policy grew on Thursday as Trump announced a trade deal with the UK, the first for his administration since imposing — then pausing — sweeping "reciprocal" tariffs against all trading partners in early April.
He said Friday that the US had "many trade deals in the hopper," and White House economic adviser Kevin Hassett said over 20 more deals were "close to being resolved." Trump said the "breakthrough" US-UK trade agreement would boost US export markets for agricultural products, including beef and ethanol. As top US officials, including Bessent, get set to meet with Chinese counterparts this weekend, Trump has suggested he might meet with Chinese President Xi after the initial talks.
China has reportedly compiled a list of US goods exempt from its 125% tariffs, aiming to ease trade tensions without making public concessions. But Trump has previously defended the China tariffs, claiming China "deserves it" and would likely absorb the costs. Meanwhile, US negotiations with the UK's neighbors in the EU have taken a different tone, with the EU on Thursday unveiling a list of US products it will target with tariffs in the event trade negotiations fail.
On the economic front, Federal Reserve Chair Jerome Powell emphasized on Wednesday that while sentiment has deteriorated, the tariff "shock hasn't hit yet" as the central bank held interest rates steady. The scale of tariff disruption on the economy will largely depend on how quickly trade deals are reached. After meeting with Canadian Prime Minister Mark Carney on Tuesday, Trump reiterated that the onus to make offers falls on other countries.
"We don't have to sign deals," he said at the White House. "They have to sign deals with us." Here are the latest updates as the policy reverberates around the world.
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