Trump floats lower tariffs

US president Donald Trump said on Friday that 80% tariffs on Chinese goods "seems right" ahead of weekend talks to contain a trade war between the world's two biggest economies.

US president Donald Trump said on Friday that 80% tariffs on Chinese goods "seems right," making his first suggestion of a specific alternative to the 145% levies he has imposed on China ahead of weekend talks to contain a trade war between the world's two biggest economies.

US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet Chinese economic tsar He Lifeng in Switzerland for talks that could be the first step toward resolving their trade disputes.

"China should open up its market to USA — would be so good for them!!! Closed markets don’t work anymore!!!" Mr  Trump said in a Truth Social post. "80% tariff on China seems right. Up to Scott B." 

While Mr Trump has on several recent occasions indicated that he expects the punitive tariff rates he has imposed on China to come down, he had not until now floated a potential figure for where they may fall to.

Following the post, US stock futures dipped slightly before rising somewhat, while in Europe the dollar and European stocks also briefly weakened.

Since taking office in January, Mr Trump has hiked levies on imports from China to 145%, in addition to those he imposed on many Chinese goods during his first term and the duties levied on Beijing by the Biden administration.

China hit back by imposing export curbs on some rare earth elements and raising tariffs on US goods to 125%, in addition to extra levies on select products including soybeans and liquefied natural gas.

The weekend talks in Geneva have been described by Trump administration officials as a step towards de-escalating tensions with China. White House economic adviser Kevin Hassett, director of the National Economic Council, said the meeting seemed "very promising" to US officials.

"We're seeing extreme respect, treating both sides with respect," Mr Hassett said in an interview with CNBC. "We're seeing collegiality and also sketches of positive developments."

Trump's push on tariffs is widely seen as elevating risks to the US economy - with concerns that they will lift prices for American consumers and businesses and rekindle inflation while at the same time cutting into the demand that has so far propped up the job market.

Indeed, Mr Trump is already facing dropping approval ratings over his handling of trade as Americans brace to pay more for clothes, electronics, toys and countless other goods that emerge from Chinese factories. China's government is seeking to mitigate closures, bankruptcies and job losses at manufacturers who are struggling to find viable alternatives to the US market.