U.S. And China To Begin Tariff De-Escalation Talks As West Coast Port Traffic Slows
All eyes are on Switzerland this weekend as Chinese officials join U.S. Treasury Secretary Scott Bessent for what he called talks aimed at “de-escalation” ahead of tariff negotiations.
State of play: A month ago, President Trump imposed a 145% tariff on most Chinese goods; Beijing hit back by raising tariffs on U.S. goods to 125%. These are the first direct talks about trade between the two countries.
Ahead of the trade talks, Trump posted on Truth Social that an 80% tariff on Chinese goods “seems right.” It’s not clear if Trump is suggesting that number should be the long-term tariff rate on China or a first step in negotiations. Nonetheless, most businesses still see the 80% figure as prohibitive to doing any business with China.
Trump’s post indicated a change would be up to Bessent, who will lead the talks in Switzerland alongside U.S. Trade Representative Jamieson Greer and their Chinese counterparts.
PUSH AND PULL
Trump previously said he would not lower the tariff rate on China, but seemed to soften his stance earlier this week. On Thursday, when asked if he would raise the levies on China even further, Trump said, “Right now, you can’t get any higher” than 145%.
That same day, he dismissed concerns about slowing cargo volume at U.S. ports as a “good thing.”
“That means we lose less money,” he said, citing the U.S. trade deficit with China.
DOWN THE PIPELINE
Trump’s comments come amid warnings of looming economic consequences — like job losses and product shortages — as American companies import fewer goods from China.
This week, the Port of Los Angeles, the busiest port in the Western Hemisphere, announced a 35% drop in cargo compared to the same week last year.
“The impact the Port of Los Angeles has on the city, the region, and the country cannot be understated,” Gene Seroka, the executive director of the Port of Los Angeles, told NPR. “The cargo that moves through this port reaches not only all 50 states, but each one of our 435 congressional districts.”