Trump Cuts Chinese Import Tariffs 80% Ahead of Trade Talks

President Donald Trump has announced a significant reduction in tariffs on Chinese imports, proposing an 80% tariff rate, down from the 145% duties imposed in April 2025. This move marks a notable shift in the US-China trade war, potentially easing tensions between the two economic giants. The decision comes ahead of crucial trade talks scheduled for May 10, where US Treasury Secretary Scott Bessent will lead the American delegation.

The sudden change in stance is believed to be influenced by pressure from financial markets and advisors, who deemed the higher tariff rates unsustainable. The aim is to stabilize economic ties and foster a more cooperative environment as both nations prepare for negotiations. The previous tariffs had sparked intense market volatility, with China retaliating with 125% duties on US goods, causing disruptions to global supply chains and impacting market prices. The reduced tariffs may signal a de-escalation of the trade war, paving the way for smoother US-China relations.

President Trump has defended his move, initially hinting at an 80% tariff on China through a series of posts on Truth Social. He later softened his stance, suggesting lower tariffs if the upcoming talks are successful. This shift follows his earlier dismissal of tariff rollbacks on China’s 145% duties, as he demanded that China open its markets, claiming it would be beneficial for both nations. The outcome of the May 10 talks will be crucial in determining whether this is a strategic maneuver or a genuine policy pivot.

Scott Bessent, the US Treasury Secretary, will have the final say on the tariff decisions. Trump has emphasized that Bessent will lead the negotiations, underscoring the importance of the upcoming talks. The reduced tariffs could stabilize markets, potentially pushing Bitcoin further as it recently crossed $100K. However, stalled talks may risk volatility, and investors are closely watching the negotiations as they unfold on May 10.