Trump Hints at Tariff Rollback if China Talks Succeed
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U.S. President Donald Trump said he believed trade negotiations launching this weekend with China would result in tangible progress, predicting Beijing would be willing to make concessions and saying he could consider cutting punishing tariffs against the country if there was significant momentum.
I think its going to be substantive, Trump told reporters May 8 in the Oval Office, as he announced a framework trade agreement with the United Kingdom.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet in Switzerland with Chinese Vice Premier He Lifeng on trade in the coming days. Trump said that if talks went well, he could consider lowering the 145% tariff he has imposed on many Chinese goods.
It could be, Trump said in response to a question about the possibility. I mean, were going to see. Right now you cant get any higher. Its at 145% so we know its coming down. I think were going to have a very good relationship.
Markets rose May 8 on optimism about the China talks, as well as Trumps UK announcement. The S&P 500 extended gains to session highs, climbing about 1.5%, as Treasuries, gold and haven currencies lost steam.
Trump said that promising trade news paired with Republican efforts to pass legislation extending and expanding his signature tax cuts should be reason for investor optimism.
This country will hit a point that you better go out and buy stock, Trump said. Now, let me tell you this, this country will be like a rocket ship that goes straight up.
Still, negotiations with China to reduce the punishing tariffs on both countries are likely to prove complicated.
Trump said on May 7 he planned to raise the case of ex-media mogul Jimmy Lai in the negotiations, in a move likely to provoke Beijing.
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I think talking about Jimmy Lai is a very good idea, Trump said in a May 7 radio interview with Hugh Hewitt. Well put it down as part of the negotiation.
Trump also threatened toymaker Mattel Inc., which said earlier this week that it would increase the prices of some of its U.S. toys that were imported from China due to Trumps tariffs.
Well put 100% tariff on his toys, and he wont sell one toy in the United States, and thats their biggest market, Trump said.
Still, the president insisted that ultimately a deal would benefit both nations economically.
I think its going to be very good for both countries, Trump continued. I would like to see China opened.
Trump said he also anticipated asking China for help mediating the conflict between Ukraine and Russia.
I think its a natural thing to ask, he said.
