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Former President Donald Trump has suggested that tariffs on Chinese goods could soon decrease. In a recent statement, Trump referred to the 145% tariff hike imposed upon returning to office and remarked, “You can’t get any higher. It’s at 145, so we know it’s coming down.” The comment came during an announcement of a new tariff agreement with the UK, marking the first significant shift in tariffs since Trump’s decision to raise global import duties in April.

US and China Prepare for Crucial Trade Talks

US and Chinese officials are set to meet in Switzerland this weekend, signaling both nations’ intentions to ease trade tensions. Trump referred to the upcoming talks as “very friendly,” with expectations that they will unfold “in an elegant way.” China’s Vice Foreign Minister Hua Chunying also expressed confidence in Beijing’s ability to manage trade relations with Washington.

Dan Wang, an expert from the Eurasia Group, noted that pressure continues to mount on both sides, suggesting that the discussions may lead to a practical de-escalation. Despite this optimism, experts caution that resolving the broader trade issues will require extensive negotiations.

Expectations of Limited Concessions Amid Ongoing Frictions

Former US negotiator Stephen Olson stated that while progress may be made, a full resolution remains unlikely in the near future. He predicted that any tariff reductions resulting from the meeting would be modest. The talks will begin with US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. However, Olson stressed that a final agreement will likely require direct involvement from both presidents.

Eswar Prasad, a trade expert who previously worked with the IMF’s China division, offered a similar view, stating that even the partial removal of recent tariffs would not resolve deeper, long-standing issues. He argued that a limited rollback of tariffs could be the most feasible outcome, as many trade barriers and restrictions would remain in place.

China’s Exports Decline, But Overall Trade Surges

In the latest data, China’s exports to the US saw a sharp decline of over 20% in April compared to the previous year. However, overall exports grew by 8.1%, exceeding expectations. This dip in exports to the US highlights the ongoing friction between the two economies, even as both sides prepare for negotiations.

These talks come shortly after the UK finalized its tariff deal with the Trump administration. Under the agreement, the US will reduce import taxes on select British cars and permit limited steel and aluminum imports without duties. The deal also shields certain UK sectors from the broad tariffs Trump implemented after taking office in January.

Global Race to Secure Tariff Agreements Before New US Duties Take Effect

Other countries are now racing to secure similar deals before the new US tariffs take effect next month. In April, Trump unveiled plans for “reciprocal tariffs” targeting multiple countries. However, these tariffs were temporarily paused for 90 days to allow for negotiations, creating a brief window of opportunity for countries like the UK to negotiate favorable terms.

As these talks progress, the international business community watches closely, hoping that a reduction in tariffs between the US and China could be the first step in resolving a conflict that has disrupted global trade for several years.