Payam Javan: President Donald Trump has indicated a potential reduction in tariffs on Chinese imports from 145 percent to 80 percent ahead of crucial trade talks with Chinese officials in Switzerland this weekend. The announcement follows Trump’s earlier imposition of steep tariffs on China, prompting Beijing to retaliate with 125 percent duties on U.S. goods. On Friday, Trump hinted at the tariff cut on social media, referencing Treasury Secretary Scott Bessent and urging China to open its markets to U.S. businesses. While Trump had previously resisted lowering tariffs, he suggested that productive negotiations could lead to a reduction, noting that the current 145 percent rate leaves room for adjustment.

The talks are part of Trump’s broader economic strategy, which includes using tariff revenues to offset income tax cuts and securing better market access for U.S. products. While maintaining a 10 percent baseline tariff on most nations and higher duties on Mexico, Canada, autos, and steel, Trump has paused elevated tariffs on other major trading partners like the EU and Japan for 90 days. Meanwhile, the U.S. secured a trade deal with the UK, announced Thursday, which lowers tariffs on luxury goods like Rolls-Royce and boosts market access for American agricultural exports. Wall Street responded positively, with the Dow, S&P 500, and Nasdaq all closing higher.