President Trump laid down a clear marker for deescalation Friday, posting that “80% Tariff on China seems right” ahead of much-anticipated trade talks with the world’s second-largest economy.
It’s the latest volley from the president on the question of whether some sort of quick tariff deescalation could be in the offing to jump-start formal talks with China set to begin this weekend and then likely to stretch for months.
The US currently imposes tariffs on goods from China as high as 145%. China has retaliated to those duties by imposing its own 125% duties.
Yet Trump left himself wiggle room ahead of the talks, adding, “Up to Scott B” — a reference to his Treasury Secretary Scott Bessent, who will be leading this weekend’s talks in Switzerland.
The Treasury secretary, US Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng will all travel to Switzerland to begin the talks, according to a trio of announcements.
The talks come after a weeks-long diplomatic dance in which both sides have tried to position the other as more in need of a deal and also after days where Trump repeatedly ruled out the quick lowering of tariffs that he now seems to support.
Read more: What Trump’s tariffs mean for the economy and your wallet
Earlier this week, Trump said that the US is “losing nothing” by not trading with Beijing and was also asked about the Chinese contention that the 145% tariff needed to be brought down before substantive negotiations could start and whether he was open to that, with the president simply answering, “No.”
But his tone began to shift Thursday when Trump predicted to reporters, “I think we will have a very good weekend.” He also added regarding tariffs that, if this weekend’s talks go well, “you know it’s coming down.”
He now appears to have fully opened the door to lower tariffs before talks even begin.
Trump trade counselor Peter Navarro added Friday morning in a Bloomberg appearance that it “should be an interesting weekend for markets” but declined to offer any additional details on how Trump’s post might impact this weekend’s talks (which Navarro will not be attending) or whether Trump was open to lowering tariffs on the US side without changes from the Chinese side.
Read more: The latest news and updates on Trump’s tariffs
In another post Friday morning, Trump obliquely addressed the question of China duties saying China “SHOULD OPEN UP ITS MARKET TO USA” and added that “CLOSED MARKETS DON’T WORK ANYMORE!!!” even after it was Trump’s “Liberation Day” tariffs and subsequent escalation that kicked off what all sides agree is essentially a trade embargo between the world’s two largest economies.
In any case, the Friday morning posts from Trump could open the door to concrete results from this weekend’s talks on tariff levels, though Bessent previously lowered expectations that a more comprehensive trade deal could come anytime soon
“On Saturday, we will begin, which I believe is the opposite of advanced,” he said Wednesday before Congress, contrasting China talks to the status of other negotiations, which he described as “quite advanced.”
This post has been updated.
Ben Werschkul is a Washington correspondent for Yahoo Finance.
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