Trump Proposes 80% Tariff on China Amid Trade Dispute Talks

Donald Trump suggests an 80% tariff on Chinese goods, replacing the existing 145% levy, amid upcoming trade talks in Switzerland. U.S. Treasury Secretary and chief negotiator will meet China’s economic tsar to ease trade tensions. U.S. and European markets show mixed reactions to Trump's proposal.

In a notable development, U.S. President Donald Trump suggested on Friday that implementing an 80% tariff on Chinese goods 'seems right.' This marks his first mention of a specific alternative to the existing 145% tariffs imposed, ahead of weekend negotiations to mitigate a trade war between the U.S. and China.

During the talks in Switzerland, U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet with China's economic leader, He Lifeng. This meeting is anticipated as a pivotal step in resolving the ongoing trade disputes between the two economic giants.

Trump's proposition, declared on Truth Social, spurred varied market reactions; U.S. stock futures initially dipped but subsequently rebounded, and a similar trend was seen in European stocks and the U.S. dollar. The talks also reflect an opportunity to reduce the trade barriers Trump enacted since his term commenced in January, and further echoed by China's retaliatory measures.

(With inputs from agencies.)