Donald Trump tariffs: Trump floats slashing the China tariff to 80%

The WTO Director-General Ngozi Okonjo-Iweala views the upcoming discussions between American and Chinese officials as a positive development towards reducing trade tensions, according to a statement released on Friday.

The scheduled meeting in Geneva between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng aims to address the ongoing trade disputes between the world's largest economies.

A WTO spokesperson emphasised that "Sustained dialogue between the world's two largest economies is critical to easing trade tensions."
These discussions represent the most significant diplomatic engagement between Washington and Beijing since US President Donald Trump initiated trade restrictions upon his recent return to office.

Subsequently, both nations have engaged in reciprocal tariff increases on their respective goods, creating economic instability not only within their own markets but also affecting the global economy.

US President Donald Trump floated slashing tariffs on China to 80% ahead of a weekend meeting, signaling a possible move to ease tensions in the ongoing trade war.

"80% Tariff on China seems right! Up to Scott B," Trump posted on Truth Social referring to Treasury Secretary Scott Bessent, who is one of the US officials set to speak with counterparts from China at a meeting in Switzerland.

A tariff loophole which allowed cheap Chinese goods to enter the United States duty-free was eliminated last week.

The result could be immediate and costly: T-shirts, stationery and other low-price products on popular e-commerce sites and elsewhere could shoot up in price as shipping carriers and sellers factor in new import taxes. Packages could be delayed, too, as processing goods becomes much more intensive for customs officials.

Ultimately, carriers are responsible for paying the tariff, but here's how you may be affected.

The elimination of the loophole, known as "de minimis," is the latest move by President Donald Trump as he implements aggressive trade policies, particularly toward China.

Before, packages worth up to $800 were exempted from tariffs when they arrived at the U.S. border. (This exemption remains in place for any packages that do not originate from China or Hong Kong.) The rationale had long been that when import taxes are small, or de minimis, customs agents should not bother collecting them. And over time, the value of packages that were exempted continued to increase.

That led to a boom in the number of de minimis shipments entering the country over the past decade, excluding the disruption from the COVID-19 pandemic. Last year, the number reached more than 1.3 billion, customs data shows, roughly the equivalent of 40 packages entering the United States every second.

Most of them were from China.

The Trump administration is considering cutting the steep 145% tariff on Chinese imports by more than half, possibly as early as next week, as US and Chinese officials gear up for high-level trade talks in Switzerland,The New York Postreported, citing sources close to the negotiations.

US officials are reportedly weighing a reduction of the levy to somewhere between 50% and 54%, a move aimed at easing tensions as trade negotiations unfold.

German industrial production jumped more than expected in March while exports also rose, data showed Thursday, a boost for Europe's biggest economy even as US tariffs cloud the outlook.

Factory output rose 3.0 percent from the previous month, according to preliminary data from federal statistics agency Destatis, after having fallen sharply in February.

March's rise, driven by sectors including automotive and pharmaceutical, was better than a 0.75 percent increase expected by analysts surveyed by financial data firm FactSet.

Exports were up 1.1 percent from the previous month, boosted by higher shipments to the United States ahead of sweeping tariffs being imposed, in line with forecasts.

The European Union has said it will file a complaint with the World Trade Organization over US President Donald Trump's imposition of swingeing tariffs on European goods.

"The EU will also launch a WTO dispute against the US on its universal so-called 'reciprocal' tariffs and tariffs on cars and car parts, by formally lodging a request for consultations," the European Commission said in a statement.

The United States is likely to impose tariffs of more than 10 percent on trading partners with which it has a trade deficit, Commerce Secretary Howard Lutnick said.

"The 10 percent baseline is for those countries that have (a) balanced budget with us, that are the best. Those who had trade deficits are going to have a higher tariff," Lutnick said in an interview with CNBC, shortly after President Donald Trump unveiled a US-UK trade deal.

The Trump administration's latest trade deal with Britain unfairly penalises US automakers that have partnered with Canada and Mexico, a trade group representing Detroit automakers said Thursday.

In a sharply-worded statement, the American Automotive Policy Council (AAPC) said the US-UK trade deal "hurts American automakers, suppliers, and auto workers," according to the group's president Matt Blunt.

The deal unveiled Thursday between US President Donald Trump and British Prime Minister Keir Starmer lowers the tariff on British vehicles to 10 percent from 27.5 percent on the first 100,000 cars shipped from Britain to the United States.

Trump agreed on Thursday to cut tariffs on U.K. autos, steel and aluminum in a planned trade deal but played down the possibility of other nations getting similarly favorable terms on his import taxes, which are roiling the global economy.

Under the framework agreement, the United Kingdom is to buy more American beef and ethanol and streamline its customs process for goods from the United States. But Trump's baseline 10% tariffs against British goods are to stay in place, and the Republican president suggested that even higher import taxes would be charged on other countries trying to reach deals with the U.S.

Trump said the deal increases access for U.S. agricultural products, though he added that the final details were still being written up. Britain says the deal will cut tariffs on U.K. cars from 27.5% to 10% and eliminate tariffs on steel and aluminum.

US President Donald Trump announced Thursday an agreement with Britain on trade, which would be the first such deal since he launched his global tariffs blitz.

The European Union on Thursday warned it could impose tariffs on US cars, planes, and other goods worth up to €95 billion ($107 billion) if trade negotiations with President Donald Trump's administration fail. Alongside this potential retaliation, the European Commission announced plans to file a complaint with the World Trade Organization (WTO) in response to Trump’s sweeping tariffs on EU exports.

While Trump introduced a 20% "reciprocal" tariff on most EU products in April, the measure was temporarily frozen until July, though a baseline 10% tariff on global imports, including those from the EU, remains in place.

Despite its preference for a negotiated settlement to avoid a full-blown trade war, the EU is preparing countermeasures should the US tariffs resume, underscoring growing transatlantic tensions over trade policy.

"The EU will also launch a WTO dispute against the US on its universal so-called 'reciprocal' tariffs and tariffs on cars and car parts, by formally lodging a request for consultations," the European Commission said in a statement.

The Bank of England is widely expected to lower interest rates on Thursday, with most economists predicting a quarter-point cut to 4.25%, as it looks beyond short-term inflationary pressures and focuses on the potential global economic slowdown triggered by the Trump administration's tariff policies. Some analysts suggest that one or two members of the nine-member Monetary Policy Committee may even support a deeper half-point reduction.

The rate decision, scheduled for 12.02pm—delayed by two minutes in observance of a Victory in Europe Day silence—comes amid growing speculation of a possible limited trade agreement between the US and the UK, which could ease the impact of Trump's tariffs.

This evolving trade backdrop has added complexity to the Bank’s decision-making process, as policymakers weigh domestic inflation concerns against external risks to global and national economic stability.

The United States and Britain were reportedly set to announce a trade agreement on Thursday that could have implications for President Donald Trump's tariffs assault, but the scope of the deal could be limited.

The New York Times and Politico reported that the agreement would be with the UK, citing multiple people familiar with the plans, while the Wall Street Journal said it would be a "framework" of a deal.

It would be the first such trade agreement since Trump imposed sweeping tariffs on US trading partners on what he called "Liberation Day" on April 2.

The president slapped 10 percent tariffs on imports from around the world, including Britain, but he temporarily froze higher duties on dozens of nations to give space for negotiations.

Trump on Wednesday wrote that a "major trade deal" would be announced with a "big, and highly respected country".

However, media and analysts said it was unclear whether a US deal with Britain had been finalised or if the two countries would announce a framework for an agreement that would be subject to further negotiation.

US President Donald Trump said on Wednesday that he will unveil a “major trade deal” with a “big, and highly respected country” during a press conference at the White House on Thursday.

The announcement is set for 10:00 am local time (1400 GMT) in the Oval Office, where Trump is expected to reveal details of what he described as the “first of many” trade agreements in the pipeline.

Although Trump did not name the country involved, The New York Times, citing sources familiar with the matter, reported that the deal is with the United Kingdom.

The development comes just weeks after Trump slapped sweeping tariffs on several trading partners, only to temporarily pause most of them to allow space for negotiations. He has since claimed that multiple countries are eager to strike new deals with Washington.

“I’ll be announcing a major trade deal with representatives of a big, and highly respected, country,” Trump posted on his Truth Social platform.

The deal is expected to mark the first concrete step in Trump’s strategy to reshape US trade relationships through aggressive negotiation tactics and tariff leverage.

The US Federal Reserve is under pressure as it meets to decide interest rates. With new tariffs rolled out by President Trump, the Fed must balance between keeping inflation low and supporting the job market. Most experts believe the Fed will keep rates unchanged this week. Inflation is slightly above the Fed’s target, but job numbers are strong. Still, the economy is slowing, partly due to businesses rushing to import goods before tariffs.

China's finance minister lashed out at the United States' tariffs for bringing "unprecedented huge risks" to the global economy, according to an article published by his ministry on Tuesday.

Separately, the Chinese foreign ministry said the United States needed to change its "threatening" approach if it wishes to reach an agreement, according to the state news agency Xinhua.

The world's two largest economies are engaged in a punishing trade war in which US President Donald Trump imposed tariffs reaching 145 percent on many Chinese products and Beijing retaliated with 125 percent duties on imports from the United States.

Lan Fo'an, speaking at an Asian Development Bank (ADB) meeting in Milan that began on Sunday, did not specifically mention the United States but said the risks were the result of "a certain country (that) has launched tariff wars and trade wars".

"The current international situation is becoming more turbulent and chaotic, unilateralism and protectionism are on the rise," he said, calling on ADB members to uphold the rules of multilateral institutions.

Canadian Prime Minister Mark Carney told US President Donald Trump that his country was "not for sale" Tuesday as they met at the White House amid tensions on tariffs and sovereignty.

Speaking in the Oval Office, Trump insisted to the recently elected Carney that it would be a "wonderful marriage" if Canada agreed to his repeated calls to become the 51st US state.

But Carney brushed off Trump's suggestions, saying: "There are some places that are never for sale ... it's not for sale. It won't be for sale, ever."

The 60-year-old Liberal leader won the Canadian election on a pledge to stand up to Republican Trump, warning that ties between the North American neighbors could never be the same.

Trump, 78, has sparked a major trade war with Canada with his tariffs while repeatedly making extraordinary calls for the key NATO ally and major trading partner to become the 51st US state.

The two leaders began their meeting with warm words, with twice-elected Trump hailing Carney, whose Liberal Pary surged from behind in the polls, for "one of the greatest comebacks in the history of politics, maybe even greater than mine."

India and the UK on Tuesday sealed a landmark free trade agreement that will benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India besides boosting overall trade and investment. Along with the FTA -- the biggest the UK has done since leaving the European Union -- the two sides also sealed a double contribution convention.

Prime Minister Narendra Modi described the two pacts as a "historic milestone" to catalyse trade, investment, growth and job creation in both the economies and further deepen the India-UK comprehensive strategic partnership.

The FTA, announced following a phone conversation between Modi and his British counterpart Keir Starmer, will benefit 99 per cent Indian exports from zero duty and ease mobility for professionals including business visitors and investors, officials said.

"In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention," Modi said in a social media post.

"These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies," he said.

The trade deal, firmed up after three years of negotiations, will ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines covering almost 100 per cent of the trade values, according to an Indian statement.

It said the FTA ensures comprehensive market access for goods, across all sectors, covering all of India's export interests.

"India will gain from tariff elimination on about 99 per cent of the tariff lines covering almost 100 per cent of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK," it said.

The U.S. trade deficit soared to a record $140.5 billion in March as consumers and businesses alike tried to get ahead of President Donald Trump's latest and most sweeping tariffs — with federal data showing an enormous stockpiling of pharmaceutical products.

The deficit — which measures the gap between the value of goods and services the U.S. sells abroad against what it buys — has roughly doubled over the last year. In March 2024, Commerce Department records show, that gap was just under $68.6 billion.

According to federal data released on Tuesday, U.S. exports for goods and services totaled about $278.5 billion in March, while imports climbed to nearly $419 billion. That's up $0.5 billion and $17.8 billion, respectively, from February trade.

Consumer goods led the imports surge — increasing by $22.5 billion in March. And pharma products in particular climbed $20.9 billion, the U.S. Census Bureau and Bureau of Economic Analysis noted, signaling fears about future levies impacting the sector.

“While we had known consumer goods accounted for the bulk of March’s rise, we can now see pharmaceutical products were $20bn higher — almost all of which were imported from Ireland,” a Tuesday note from analysts at Oxford Economics notes. “Uncertainty remains high, and broader signs of front-loading may be visible in coming months.”

US President Donald Trump and Canadian Prime Minister Mark Carney faced off in the Oval Office on Tuesday and showed no signs of retreating from their gaping differences in an ongoing trade war that has shattered decades of trust between the two countries.

The two kept it civil, but as for Trump’s calls to make Canada the 51st state, Carney insisted his nation was “not for sale” and Trump shot back, “time will tell.”

Asked by a reporter if there was anything Carney could tell him to lift his tariffs of as much as 25% on Canada, Trump bluntly said: “No.”

The US president added for emphasis, “Just the way it is.”

Carney acknowledged that no bit of rhetoric on tariffs would be enough to sway Trump, saying that “this is a bigger discussion."

“There are much bigger forces involved,” the Canadian leader continued. “And this will take some time and some discussions. And that's why we're here, to have those discussions."

The meeting between the two leaders showcased the full spectrum of Trump's unique mix of aggression, hospitality and stubbornness.

Shortly before Carney's arrival, Trump insulted Canada by posting on social media that the United States didn't need “ANYTHING” from its northern neighbor, only to then turn on the charm and praise Carney's election win in person before showing his obstinance on matters of policy substance.

Carney won the job of prime minister by promising to confront the increased aggression shown by Trump, even as he has preserved the calm demeanor of an economist who has led the central banks of both Canada and the United Kingdom.

At times, Carney struggled to interject his views and raised his hand to talk as Trump held forth at length and veered between topics, touching on California Democratic Gov. Gavin Newsom, Carney’s predecessor, Justin Trudeau, and teasing a “great” upcoming announcement that's “not necessarily on trade.”

Trump offended Canada's sense of pride and friendship by saying he wants to make Canada the 51st U.S. state and levying steep tariffs against an essential partner in the manufacturing of autos and the supply of oil, electricity and other goods. The outrage provoked by Trump enabled Carney’s Liberal Party to score a stunning comeback victory last month as the trade war and attacks on Canadian sovereignty have outraged voters.

Trump said the two would not discuss making Canada part of the U.S., even as he insisted the idea would lead to lower taxes for Canadians.

“It’s not for sale,” Carney said. “It won’t be for sale. Ever. But the opportunity is in the partnership and what we can build together.”

Trump persisted by saying that the United States did not want to buy autos from Canada, even if the vehicles were also assembled in America. The U.S. leader insisted that the $63 billion trade deficit in goods — which he inflated to $200 billion — was a subsidy that needed to come an end.