Trump's 80% Tariff Proposal Sparks New U.S.-China Trade Talks

On Friday, President Donald Trump made headlines by proposing an 80% tariff on Chinese goods, marking the first time he suggested a specific reduction from the existing 145% levy. This announcement comes ahead of crucial discussions scheduled for the weekend, as U.S. and Chinese representatives prepare to meet in Switzerland to address ongoing trade tensions.

The proposed tariff adjustment is seen as a potential step towards resolving the damaging trade war that has strained global supply chains. In a statement from the White House, spokesperson Karoline Leavitt indicated the figure's tentative nature, while stressing the need for Chinese concessions in return. Notably, the meeting will also touch upon the pressing issue of fentanyl trafficking, a factor linked to Trump's tariff strategy.

Despite the possible tariff reduction, the financial markets reacted negatively, with U.S. stocks slipping following Trump's remarks. The trade conflict, characterized by tit-for-tat tariff increases and export curbs from both nations, continues to cause volatility and concern over rising consumer prices. Swiss Vice President Guy Parmelin, hosting the talks, remains hopeful for constructive dialogue to alleviate tensions.

(With inputs from agencies.)