President Donald Trump has set negotiating terms for the first discussions between the US and China, scheduled for this weekend in Geneva. Trump is demanding that China import more US goods while suggesting the US lower its 145% tariff on most Chinese goods to 80%. The proposed concession would be a significant departure from the current situation, where shipments from China to the US have dropped by 60%. Economists believe that a 50% tariff is the threshold for normal business to resume between the two countries, and even if tariffs were reduced to 80%, it may not be enough to encourage US businesses to import Chinese goods. The trade war has already led to price hikes and shortages, with Goldman Sachs analysts predicting a doubling of inflation to 4% by the end of the year. China reported a 21% decline in exports to the US last month, before the tariffs took effect. Trump has expressed satisfaction with the decrease in shipments from China, equating it with the US no longer losing money, although this perspective is inaccurate.
Source: https://www.cnn.com/2025/05/09/economy/china-tariff-trump-trade