US President Donald Trump has hinted that US tariffs on goods from China may come down as top trade officials from the world’s two biggest economies are set to hold talks.
“You can’t get any higher. It’s at 145, so we know it’s coming down,” he said, referring to the new import taxes of up to 145% imposed on China since he returned to the White House.
Trump made the comments during an event to unveil a tariffs deal with the UK – the first such agreement since he hit countries around the world with steep levies in April.
The meeting in Switzerland this weekend is the strongest signal yet that the two sides are ready to deescalate a trade war that has sent shockwaves through financial markets.
“I think it’s a very friendly meeting. They look forward to doing it in an elegant way,” Trump said of the talks with China.
China’s Vice Foreign Minister Hua Chunying also struck a confident note ahead of the talks, saying Beijing has “full confidence” in its ability to manage trade issues with the US.
Officials in both Washington and Beijing are “under growing economic pressure”, Dan Wang from political risk consultancy Eurasia Group told the BBC.
“The recent signals from both sides suggest a transactional de-escalation is on the table”, she added.
The announcement earlier this week of the talks was welcomed as an important first step towards easing tensions but analysts have warned that this marks the start of what are likely to be lengthy negotiations.
“The systemic frictions between the US and China will not be resolved any time soon,” said former US trade negotiator, Stephen Olson.
Any cuts to tariffs as a result of this meeting are likely to be “minor”, he added.
Credit: bbc