The corporate tax break boondoggle US President Donald Trump has proposed an 80% tariff on Chinese goods. As he prepares for significant international trade talks in Switzerland this weekend, he thinks this “feels right.” On Friday, Trump then released this on social media. He stressed that the current strain on US-China relations is the biggest threat to his ability to succeed in changing the global trading environment.
That day, Trump was very clear about what his new approach to trade with China would be. He wrote, “CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!” This feeling is indicative of Trump’s overall, years-long stance on rattling cages to pressure China to open their markets to American business.
The new talks are taking place against the backdrop of the United States’ enormous bilateral trade deficits with China. They retain importance in trade. The U.S. exported $143.5 billion worth of goods to China in 2024. By comparison, imports from China soared at an eye-popping $438.9 billion, according to the Office of the U.S Trade Representative. Taken together, these figures underscore the complicated nature of our trade relationship, one that Trump is trying to reshape with mixed success through ongoing negotiations.
As it stands, Chinese products now have a 145% tariff to pay right off the bat. Expecting tariffs to go up Trump’s trade proposal would drastically reduce the average U.S. trade tariff rate to 0.2%. This is a big change in direction, albeit still above historical averages. Most analysts agree that the talks in Switzerland will unlikely result in a full-scale free trade agreement. This holds even in light of the extraordinarily high proposed levy.
U.S. Trade Representative Jamieson Greer expressed optimism that the meetings ahead would ensure “stability” in trade relations. He suggests it should be cautiously optimistic, looking for step by step, rather than a big bang solution.
In a follow-up post on Truth Social, Trump reiterated his position, stating, “80% Tariff on China seems right! Up to Scott B.” This whine shows how much he leans on advisors and stakeholders as he works his way through the thicket of complex trade dynamics.
As we get closer to the weekend, all eyes will be on Switzerland. There, though, the most critical conversations will occur with a backdrop of a changing and increasingly competitive global economy. What’s at stake The future of these negotiations could prove to be a watershed moment for U.S.-China trade relations and the international marketplace at large.
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