The president said China is making much more profits than the US.
President Donald Trump on May 8 said future talks between the US and China “may reduce current tariffs imposed on the enemy.”
“We’re going to see it now,” Trump said from the oval office, responding to a question about whether Americans can expect to cut tariff rates.
“You can’t go any further. It’s already 145 (percent). So we know it’s coming down. I think we have a very good relationship.”
In another comment from the White House on the same day, Trump expressed optimism about the outcome of the talks.
“I think we’re going to have a good weekend with China. I think they have a lot to gain. I think they have a lot more profit than we do, but… I think we’ll have a really good weekend.”
The day before, Trump had indicated that upcoming trade talks with Swiss Chinese officials on May 10 were launched by the Chinese after their rivals were initially reluctant to launch such talks without concessions from the US.
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“They said we started? Well, I think they should go back and study their files,” Trump said in response to a White House reporter’s question during an unrelated event.
If trade talks were actually launched by the Chinese, it represents a reversal from the communist state’s previous position.
The unexpected announcement continued to follow weeks of uncertainty as both sides remained entrenched.
The US wanted trade negotiations while implementing the 145% tariff.
Beijing initially said loosening these tariffs was a prerequisite for future dialogue between the two countries.
Trump said the US has been gaining since a period of trade slowing, referring to decades of trade deficits between the US and China.
“We were losing hundreds of millions of dollars in China. Now, we essentially do not do business with China. So we’re saving hundreds of millions of dollars. It’s very simple,” Trump said.
Furthermore, the cost of a small number of certain products is increasing, and as it is most prominently manufactured in China for its products such as stools and car seats, managers are considering the possibility of exemption from tariffs.
During a May 7 hearing before the House Financial Services Committee, Treasury Secretary Scott Bescent told Rep. Ayana Presley (D-Mass.) that exemptions from tariffs on car seats, strollers and other baby products are “in consideration.”
Bescent will meet with the main ones of China’s economic representatives, the Treasury said.
They represent the first senior-level trade talks between the two superpowers on the issue since Trump took office.
This is the first move towards loosening the air tariffs that two economic superpowers have placed on each other.
The US currently maintains a 145% tariff on Chinese goods, while China is 125% obligation on US goods.
“Economic security is national security, and President Donald J. Trump is leading both domestically and internationally for a stronger and more prosperous America,” Bescent said in a statement.
“I look forward to productive consultations as we are committed to re-aligning the international economic system to better serve the interests of the United States.”
“In President Trump’s direction, I am negotiating with the country to readjust trade relations, achieve mutual relations, open new markets and protect America’s economic and national security,” Greer said.
“I look forward to holding a productive meeting with some of my counterparts and visiting with my team in Geneva.
The talks announcement shows Trump’s victory on the issue, but reaching an agreement could still be a difficult task.
On May 7, Trump indicated he plans to use the speech as an opportunity to raise the case of former media mogul Jimmy Lai, who is currently facing the prospect of life imprisonment, as the Hong Kong court decision is pending in the national security lawsuit.
Trump has called for the release of LAI in the past. Now he shows that he plans to use trade consultations as a platform to raise the issue again.
