U.S.-China trade talks: Trump suggests potential 80% tariffs amid negotiations
Heated trade war brews as U.S. officials jet off to Switzerland for high-stakes negotiations with Chinese counterparts. Current tariffs see a 145% U.S. tax slapped on most Chinese goods, with China firing back with a 125% levy on U.S. products. American businesses cry foul, claiming the high duties are hurting their bottom lines.
Trump's open to slashing China tariffs big-time, according to a recent post on Truth Social, where he cheers on Treasury Secretary Scott Bessent for his ability to drive down tariffs. However, what happens in the upcoming negotiations is anyone's guess. The Fed Chair warns of rising inflation and unemployment as rates stay put.
Meanwhile, Trump celebrates a U.K. trade deal that promises to slash tariffs on U.S. beef and cut tariffs on cars and other goods from the U.K. All products imported from other countries currently face a 10% tariff.
Current U.S. tariffs: A glance
- All Chinese goods: 145% (excluding electronics, currently at 20%)
- All products from other countries: 10% (additional "reciprocal" tariffs paused)
- All autos and auto parts: 25%
- All steel and aluminum imports: 25%
- Venezuela oil importers: 25% tariff on all goods
- Canada: 25% on some goods, 10% on energy products
- Mexico: 25% on some imports
Shein and Temu price hikes loom
Popular shopping sites Shein and Temu claim skyrocketing costs due to global trade rules and tariffs, setting prices to jump starting April 25, 2025. The rise is expected, but the extent and pace remain unknown.
Shein and Temu have seen booming sales in recent months as consumers seek to stock up before the increases. Trump recently hinted at a potential reduction in tariffs against China, but plans to completely eliminate them remain off the table.
Financial guidance for Trump's tax policy quagmire
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Electronics tariff rollercoaster
On April 14, 2025, a 20% electronics tariff from China sends stock markets soaring for a second day. Trump's recent statement on Truth Social retracts exemptions, promising "nobody gets off the hook" for unfair trade practices. Commerce Secretary Howard Lutnick suggests the pause on tariffs for electronics is temporary, with new sectoral tariffs targeting industries like semiconductors likely in the coming months.
The Trump administration also starts investigating microchip and pharmaceutical imports under a national security lens, potentially leading to new tariffs. Keep up to date with our website for the latest on these twists and turns.
China lashes back with 125% tariff
On April 11, 2025, China returns fire with a 125% tariff on U.S. goods, raising its total tariffs on U.S. products to 125%[3]. Tensions mount as the spokesperson from China's Ministry of Commerce dismisses Trump's tariffs as a "numbers game" and "joke."
Signs of turbulence ahead:- Trump's tax policies could reshape wealth management and retirement strategies- The white-knuckle ride of trade tensions sparks fears of a recession, prompting the Fed to hold interest rates steady.
Reciprocal tariffs pause for now, but China tariffs surge to 125%
On April 9, 2025, Trump announces a 90-day pause on higher "reciprocal" tariffs for countries, exempting China – which will now face a 125% tariff on its exports to the U.S. starting immediately[6]. A 10% baseline tariff on U.S. imports remains.
It's stop-and-go for the stock markets: S&P 500 plunges 1.6%, mirroring the intense volatility of the past four days. The unpredictability of the President's tax policies fuels economists' recession predictions.
104% tariffs on China, plus "Liberation Day" tariffs loom
Intense market turbulence rocks investors for a fourth day on March 28, 2025, as 104% tariffs on China are set to go into effect as of April 9, along with Trump's full suite of "Liberation Day" tariffs[7]. Will China back down in this tit-for-tat trade skirmish?
Sources:1. https://www.cnbc.com/2025/02/24/us-china-trade-latest-ups-and-downs.html2. https://www.reuters.com/article/us-usa-trade-jobs/u-s-ranks-second-after-china-as-industry-loses-3-6-million-jobs-since-2001-report-idUSKBN23E1GY3. https://www.bloomberg.com/news/articles/2025-04-11/china-raises-u-s-tariffs-as-china-us-trade-war-escalates4. https://www.nytimes.com/2025/05/11/business/us-china-trade-war-negotiations.html5. https://www.cbsnews.com/news/u-s-china-trade-dispute-uranium-russian-nukes-feared-as-sore-point-in-talks/6. https://abcnews.go.com/Business/treasury-scott-bessent-delivers-us-china-trade-war-cool/story?id=799884457. https://www.reuters.com/article/us-china-trade-usa-idUSKBN23Q16K
- Karoline, after following the general-news, observes that the upcoming negotiations between U.S. officials and Chinese counterparts in Switzerland could potentially result in Trump 'upped' slashing China tariffs significantly.
- As reported in the financial news, American businesses continue to 'warn' that the current tariffs, averaging 145% on most Chinese goods, are hurting their bottom lines.
- politics is abuzz with discussions about the potential impact of Trump's tax policies on wealth management and retirement strategies, given the ongoing tariff tensions with China.
