U.S. Stock Futures Rise as Trump Eyes Major Tariff Cuts Ahead of China Trade Talks
1min read U.S. stock futures edged higher early Friday as investors weighed potential breakthroughs in trade relations between Washington and Beijing. As of 8:30 a.m. ET, Dow futures rose 40 points to 41,508.00, S&P 500 futures gained 11.00 points to 5,695.50, and Nasdaq 100 futures climbed 52.50 points to 20,200.50.
The gains in futures trading come amid fresh signals from the White House that President Trump is open to slashing tariffs on Chinese goods, potentially by as much as 80%. The move is aimed at de-escalating tensions and alleviating the economic toll on both sides ahead of high-stakes trade talks this weekend.
The talks—set to begin Saturday in Geneva—will be led by U.S. Treasury Secretary Scott Bessent and Chinese Vice premier He Lifeng. While major policy changes are not expected immediately, officials say a successful dialogue could pave the way for tariff reductions as early as next week.
Currently, U.S. tariffs on Chinese imports stand at 145%, with China retaliating at 125%. Trump acknowledged Thursday that rates have likely peaked, saying, “You can’t get any higher. It’s at 145, so we know it’s coming down.” He added that he expects “a good weekend with China,” noting that Beijing “has far more to gain than we do” from any agreement.
Commerce Secretary Howard Lutnick echoed the administration’s hopes for a deal, saying the goal is “a de-escalated world where we return to normal trade relations and work on a comprehensive deal together”.
Bessent has also proposed suspending tariffs on specific categories, including baby products, to ease the burden on American families. He addressed the issue in testimony before the House Financial Services Committee earlier this week.
Among U.S. priorities for the weekend summit are China’s lifting of export restrictions on rare earth minerals—vital for U.S. manufacturers—and curbing the flow of precursor chemicals used in fentanyl production. Sources say separate discussions on the latter issue could soon follow the trade summit.
Beijing, for its part, is demanding full cancellation of what it deems “unilateral tariffs.” On Thursday, Chinese Commerce Ministry spokesman He Yadong called on Washington to “show sincerity” and correct its “wrongdoing” in past trade actions.
With futures pointing to a strong open, markets appear to be pricing in optimism—but will be watching closely for signals of real progress as talks unfold this weekend.
