Trade Tensions Surge: Trump's 80% Tariff Proposal on China

President Donald Trump suggests an 80% tariff on Chinese goods ahead of U.S.-China trade talks. The proposal aims to replace existing 145% levies and address fentanyl trafficking. Talks in Geneva could impact global supply chains and economic relations, while the U.S.-U.K. trade agreement creates cautious optimism.

President Donald Trump has proposed an 80% tariff on Chinese imports, suggesting a potential shift from the current 145% levy. This announcement comes as U.S. and Chinese officials prepare for pivotal trade talks in Switzerland aimed at resolving ongoing tensions.

The weekend negotiations, involving U.S. Treasury Secretary Scott Bessent and China's economic leaders, are crucial for addressing the tariffs and the broader implications of the trade war on global supply chains. Trump cited China's fentanyl trafficking as a key reason for previously imposed import taxes.

While the proposal could lower tariffs, the economic impact remains uncertain. Businesses brace for potential changes, and investors watch anxiously amidst ongoing market volatility. The recent limited trade agreement between the U.S. and the U.K. has offered some optimism, yet its effect is still under scrutiny.

(With inputs from agencies.)