When Donald Trump says an 80% tariff on Chinese goods “sounds right”, that’s protectionism. As the U.S. prepares for the biggest trade negotiations since the beginning of the trade war with Beijing this Saturday in Switzerland, NPR The proposed tariff reduces the 145% levy that most Chinese goods are currently subjected to by a large margin. This amendment highlights the deteriorating relationship between the two economic juggernauts.
China is still the wildcard in Trump’s quest to remake the global trading landscape. Additionally, the nation is now one of the United States’ biggest trading partners. In 2024, the U.S. imported $143.5 billion worth of goods from China. At the same time, our imports from China soared to a breathtaking $438.9 billion. Despite this immense trade volume, ongoing conflicts have resulted in tariffs over 100% on many products from each country.
The next round of negotiations are not expected to result in a big trade deal. U.S. Trade Representative Jamieson Greer said he was hopeful these discussions might produce clarity that could provide “stability” as a base for future talks. It remains uncertain whether Trump’s proposed 80% tariff would represent a long-term strategy or merely a negotiating tactic during these discussions.
Such incendiary rhetoric serves only to underscore Trump’s apparent fixation on China to liberalize its markets to U.S. exports. He thinks this would be a mutually beneficial adjustment for both countries. He stated, “CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!”
The proposed 80% tariff would be a bombshell in such negotiations and might change the entire calculus. It would help strategically position the U.S. for future trade discussions while looking to reduce the penalty on competitive Chinese imports. These already strained waters have reached historic levels of brinksmanship as China’s goods have been subjected to tariffs reaching up to 145%.
The new proposed tariff is a world away from the very U.S.-U.K. trade agreement that starts with a baseline tariff of just 10%. That’s a pretty glaring difference, and unfortunately, it underscores how complicated U.S.-China trade relations can be. Both countries have large hurdles to overcome in order to reach an agreement.
As Trump goes deeper into his ‘buy American’ proposals, he’ll be walking a tightrope between a desire to protect American domestic economic interests and that of international relations. The result of these trade negotiations will almost certainly have long term ramifications for the global economy and U.S.-China relations.