INSUBCONTINENT EXCLUSIVE:
first public proposal to reduce the current 145% tariff.This announcement comes just before high-level trade talks in Switzerland, where
Treasury Secretary Scott Bessent and chief negotiator Jamieson Greer will meet with Chinese economic leader He Lifeng.The US imposed the
145% tariff earlier this year, escalating a trade conflict that began with previous rounds of tariffs under both Trump and Biden
China responded with a 125% tariff on US goods and targeted exports like soybeans and liquefied natural gas.These moves caused a 60% drop in
US imports from China and led to price increases in the US
Analysts warn that inflation could reach 4% by year-end due to the conflict.Despite the trade recalibration, China reported an 8.1% rise in
exports in April, far exceeding forecasts
However, sales to the US fell by 21%
Signals Shift with 80% Tariff Proposal Ahead of China Meeting
Some US officials and business leaders argue that a 50% tariff is necessary to restore normal trade.The Geneva meeting aims to ease
tensions, but both sides face pressure from slowing economies and rising costs
The talks represent a tentative step toward resolving a dispute that has disrupted global supply chains and markets.Any breakthrough will
likely take time, as both governments remain cautious and seek to protect their own interests
The outcome will shape trade flows and business decisions for months to come.
