The Blubber

President Donald Trump on Friday said an 80% tariff on Chinese goods “seems right,” marking the first time he has floated a specific rate lower than the current 145% tariffs placed on Chinese imports. His remarks come just ahead of high-stakes negotiations set for the weekend.

U.S. Treasury Secretary Scott Bessent and top trade envoy Jamieson Greer are slated to meet Chinese Vice Premier He Lifeng in Switzerland, with the goal of easing tensions in the ongoing trade war between the world's two largest economies.

A senior Chinese security official will also attend the Geneva talks, according to a source familiar with the matter. The move, first reported by the Wall Street Journal, underscores the prominence of fentanyl trafficking in U.S.-China relations. Trump has cited fentanyl as a key justification for slapping punitive tariffs on goods from China, as well as on imports from Canada and Mexico earlier this year.

China’s embassy in Washington declined to comment on the upcoming meetings.

On social media, Trump urged China to open its markets to American goods, claiming “Closed markets don’t work anymore!!!” He added, “80% tariff on China seems right. Up to Scott B.”

China’s Foreign Ministry, in response, has condemned what it describes as coercive and unfair trade practices, reiterating its stance against what it views as unsustainable U.S. trade policies.

Although Trump has recently hinted at a possible reduction in tariffs, Friday's comment marks the first time he has proposed a concrete figure. While 80% is significantly lower than the current 145%, it remains far higher than the 60% rate he floated during his campaign last year. It's unclear whether Beijing would view this latest proposal as a meaningful concession, especially as Bessent has characterized the current state of U.S.-China trade as nearly a full embargo.

The precise level at which tariffs ultimately land has become a major point of concern for global investors, amid months of market instability fueled by the turbulent rollout of Trump’s protectionist measures.

Markets React

Following Trump’s remarks, U.S. stocks slipped modestly on Friday. The dollar also lost ground against a basket of key global currencies, as investors weighed the implications of a possible tariff adjustment.

Since his return to office, Trump has ramped up duties on Chinese imports to 145%, on top of prior tariffs enacted during his first term and measures maintained under the Biden administration.

Beijing retaliated with export restrictions on strategic rare earth materials used in U.S. defense and tech manufacturing, as well as by hiking tariffs on American exports to 125%. Additional duties were also levied on goods like soybeans and liquefied natural gas.