¡®China should open up its market to USA ¡ª would be so good for them¡¯ says Donald Trump before Geneva talks with Chinese officials

US President Donald Trump on May 9 suggested an 80% tariff on Chinese goods, raising eyebrows just as American and Chinese officials prepare for high-level trade talks in Geneva. Trump posted a status on Truth Social, linking the potential tariff move to US Treasury Secretary Scott Bessent. He added that China should open its market to US goods, calling closed markets outdated and ineffective. This is a notable shift from his earlier position of maintaining high tariffs.

Geneva talks aim to ease trade tensions

Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China¡¯s top economic official, He Lifeng, in Switzerland. These weekend discussions are seen as a tentative but significant attempt to reduce tensions in the ongoing trade war between the world¡¯s two largest economies. The Geneva meeting comes amid uncertainty over US-China dialogue, especially following China¡¯s denial of Trump¡¯s repeated claims of speaking directly with President Xi Jinping.

US President Donald Trump | Credit: X

Tariff battle escalates between two economies

Trump, who returned to office in January, has raised tariffs on Chinese imports to 145%. China responded with 125% tariffs on US goods and added targeted levies on critical items like soybeans and liquefied natural gas. Additionally, Beijing imposed export restrictions on specific rare earth materials. The tit-for-tat actions reflect a growing standoff, even as both nations prepare for talks. Trump¡¯s latest remarks indicate possible tariff flexibility, though no official rollback has yet been confirmed.

China¡¯s exports defy expectations despite tariffs

Despite the mounting tariffs, China's exports grew in April, showing an 8.1% increase year-on-year in US dollar terms. This was well above Reuters¡¯ forecast of 1.9%. Imports, however, dipped 0.2%, which was also less than the anticipated 5.9% decline. Between January and April 2025, China¡¯s exports to the US dropped 2.5%, while imports from the US fell by 4.7%. These figures suggest that while trade tensions are high, China¡¯s export engine remains resilient.

Inflation data in focus as talks near

China is expected to release its inflation data on May 10. Economists polled by Reuters project that the consumer price index (CPI) will fall 0.1% year-on-year, while the producer price index (PPI) could decline by 2.8%. These economic indicators will be closely watched as trade negotiations unfold, offering further context to China¡¯s domestic economic environment amid international pressures.

For more news and current affairs from around the world, please visit Indiatimes News.