[Trump Team Seeks Tariff Cuts, Rare Earths Relief in China Talks]
The Trump administration is preparing for weekend trade talks with China in Geneva, aiming to lower tariffs currently as high as 145% on Chinese imports to below 60%. Led by Treasury Secretary Scott Bessent and Vice Premier He Lifeng, the discussions are expected to be exploratory but may yield early reductions if progress is made. A key U.S. demand includes the easing of China’s export restrictions on rare earths, as industries face supply disruptions. Talks may also address fentanyl precursor exports from China.
Despite the potential for modest de-escalation, experts note that even halving current tariffs would leave duties at historically high levels, likely continuing to weigh on the U.S. economy. According to Bloomberg Economics, current tariffs could reduce U.S. GDP by 2.9% and raise core inflation by 1.7% over several years. While both sides may be open to reciprocal tariff reductions, entrenched political positions and strategic mistrust suggest that a comprehensive deal remains a long-term challenge.
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