President Trump suggested on Friday that he was open to sharply reducing the tariffs that the United States had imposed on China, as American and Chinese negotiators prepare to meet in Switzerland this weekend for high-stakes trade talks.
Trade tensions between the United States and China have roiled international markets and the global economy. The negotiations on Saturday and Sunday are intended to de-escalate the situation and help set the stage for a broader trade pact between the two economic superpowers.
In a post on social media, Mr. Trump said that an 80 percent tariff on China “seems right,” adding that it would be “up to Scott B,” an apparent reference to Treasury Secretary Scott Bessent.
An 80 percent tariff would be a big drop from the current 145 percent that Mr. Trump imposed on Chinese imports in recent months. But that high a level would still shut off most trade between the countries. Chinese data released on Friday showed shipments from that country to the United States plunged 21 percent in April from the same period a year ago.
The White House press secretary, Karoline Leavitt, said on Friday afternoon that the 80 percent figure was one that Mr. Trump “threw out there” and that a reduction would only happen as part of a negotiation.
“The president still remains with his position that he is not going to unilaterally bring down tariffs on China,” Ms. Leavitt said. “We need to see concessions from them as well.”
It’s also unclear if the talks will lead to any short-term resolution for two governments that have serious economic disputes and have taken a harsh tone toward the other in recent months.
The Trump administration has been racing to strike trade deals with other countries ahead of a self-imposed deadline for additional tariffs to go in effect on most trading partners. But it has remained in a standoff with China, which is already subject to a minimum tariff of 145 percent on all imports.
This week, the two sides agreed to hold meetings in Geneva that will include Mr. Bessent; Jamieson Greer, the U.S. trade representative; and He Lifeng, China’s vice premier for economic policy.
Stock markets in the United States opened higher on Friday after Mr. Trump expressed a willingness to lower tariffs and said in a separate post that many trade deals were “in the hopper.” On Thursday, Mr. Trump highlighted a new preliminary economic pact with Britain as evidence that his tariff strategy is working.
The recent elevation of Mr. Bessent, who is viewed as a pragmatist on trade, to lead the talks with China has also helped to calm markets. The Treasury secretary has argued that the tariffs and trade restrictions that the United States and China have levied are “unsustainable” and has urged Beijing to begin talks to address what the Trump administration views as unfair trade practices.
Despite signs of greater flexibility from Mr. Trump, an 80 percent tariff may not be low enough to restart business across the Pacific.
While it differs from company to company, some executives have said that tariffs above 50 percent are generally enough to freeze exports to the United States. Companies that are not able to find an alternative source of supply for their products outside China are facing the prospect of bankruptcy and layoffs as the summer grinds on and even 25 percent tariffs can be crippling.
Speaking at the Milken Institute Global Conference in Los Angeles this week, Jane Fraser, the chief executive of Citigroup, said companies could withstand lower tariffs, though trade uncertainty had forced them to pause investment and hiring.
“If it is 10 percent, most of the clients we talk to say, ‘Yeah, we can absorb that,’” she said. “If it is 25 percent, not so much.”
Economists have warned that the chances of a recession in the United States are rising because of Mr. Trump’s tariffs. Last month, the International Monetary Fund downgraded its outlook for the United States and global output.
While some companies have started to increase their prices as a result of the levies, the effects of Mr. Trump’s tariffs haven’t been so obvious yet for U.S. consumers. That is because it takes many weeks to ship items to the United States from China by sea, and because companies have stockpiled generous amounts of inventory ahead of the tariffs coming into effect.
But as trade between the United States and China remains at a standstill, those effects start to compound and become more apparent, in the form of higher prices and short supply.
“The companies know what’s happened,” said Ryan Peterson, the chief executive of Flexport, a logistics company. “Their business models are under a huge amount of pressure.”
The longer the United States waited to make changes to tariffs, he added, “the more severe the shock will be.”
It remains unclear how Beijing will receive Mr. Trump’s change of tone. After weeks of refusing to “kneel down” to the demands of the United States, China said it had decided to come to the table because of “global expectations, China’s interests and the calls of American industry and consumers.”
But it has also struck a defiant tone. “We have no fear,” Hua Chunying, vice foreign minister, told reporters on Friday during a trip to China’s countryside. “We do not want any kind of war with any country. But we have to face up to the reality,” she said, according to a report from Reuters.
The Chinese government has not confirmed who else will be with Mr. He in talks with American officials. But Wang Xiaohong, China’s minister of public security, was traveling with Mr. He in Switzerland, according to one source who agreed to speak on the condition of anonymity. Any negotiations on fentanyl would be led by Mr. Wang, who is also the director of China’s narcotics control commission.
The talks “seem more like efforts to probe at the positions of the other side,” said Ja-Ian Chong, an associate professor of political science at the National University of Singapore. The Chinese side may say it is willing to make concessions in areas like balancing the country’s trade surplus, or help to curb the export of precursors for fentanyl.
“I am doubtful anything concrete is going to come out of this upcoming set of meetings,” Mr. Chong added.
But the Trump administration has been under pressure to show progress in trade talks after weeks of volatility in markets and growing fears on Wall Street and in corporate America of a downturn.
“Everything that’s been going on with the meeting in Switzerland is very promising to us,” Kevin Hassett, director of the White House’s National Economic Council, said on CNBC on Friday. “We’re seeing collegiality and also sketches of positive developments.”
Mr. Trump said at the White House this week that he expected the talks with China to be substantive. But analysts have tempered their optimism about a quick breakthrough because China usually prefers to engage in extended and formal negotiations. Besides tariff reductions, a more specific list of requirements from both sides are expected for a comprehensive deal.
Despite Mr. Trump’s affinity for imposing tariffs, in a separate post on Truth Social on Friday he made the case for open markets and called on China to expand access for American businesses.
“CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!” Mr. Trump wrote.
Tony Romm contributed reporting.
