President Donald Trump said on social media he’s open to cutting China tariffs from 145% to 80%.
That’s a big discount!
Analysts are saying shoppers won’t see big price drops on clothes, sneakers, or toys.
They also caution that Chinese product shortages could persist even at lower rates. But that just leaves room for American manufactures to fill the gap.
Looks like tariff tug-o-war isn’t ending anytime soon.
NOW – Donald Trump on China:
“CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!”
“80% Tariff on China seems right! Up to Scott B.” pic.twitter.com/1cCukQmRyr
— Tucker Carlson Network
Fan Account (@TCNetworkFans) May 9, 2025
ABC News reports:
President Donald Trump on Friday voiced a willingness to ease tariffs on China, saying on social media it “seems right” to slash levies from 145% to 80%.
The announcement arrives a day before Treasury Secretary Scott Bessent is set to begin trade negotiations with Chinese officials at a meeting in Geneva, Switzerland.
The potential tariff reduction floated by Trump may avert a virtual standstill of trade between the world’s two largest economies, but the move would not substantially ease expected price increases for goods such as clothes, sneakers and toys, analysts told ABC News.
Product shortages would also remain a possibility at the lower tariff rate, they added.
“A tariff of 80% would still have a dramatic effect,” Christian vom Lehn, an economics professor at Brigham Young University, told ABC News. “It would mean a significant impact for consumers.”
Trump last month sharply increased tariffs on China, prompting China to retaliate with 125% tariffs on U.S. goods. The tit-for-tat measures set off a trade war with the third-largest U.S. trade partner, which accounted for nearly $440 billion worth of imports last year.
The tariffs elicited warnings from a slew of companies about the risk of price increases for U.S shoppers.
Toy giant Mattel warned in an earnings report this week of plans to shift some of its supply chain outside China, adding that when necessary it would take “pricing action in its U.S. business.” The move follows similar messages from electronics chain Best Buy as well as Chinese e-commerce retailers Shein and Temu.
Chinese shipments to the U.S. have dropped significantly, falling 21% in April compared to a year earlier, data from China’s General Administration of Customs on Friday showed.
Risks for consumers would continue to linger for two key reasons, analysts said: An 80% tariff would still amount to a punishing tax on imports, while uncertainty about the chance of another policy shift would make it difficult for companies to take full advantage of the lower rate.
Tariffs raise prices for consumers if importers fail to swallow the tax burden by eating into their profits or requesting a supplier sell the product at a lower rate in order to offset a share of the cost.
Under the current 145% tariff on Chinese goods, suppliers and importers face immense pressure as they try to bear some of the tax cost out of concern that higher prices would hurt sales, experts told ABC News. Due to the sky-high tariff, however, many sellers have little choice but to hike prices or risk losses, they added.
NEW: President Trump said the tariff on China can be lowered from 145% to 80%, but he left it up to Treasury Secretary Scott Bessent, who will be meeting with the Chinese this weekend in Switzerland.
Trump wrote on Truth Social: “80% Tariff on China seems right! Up to Scott B.”… pic.twitter.com/G3ZKqgkImP
— RedWave Press (@RedWave_Press) May 9, 2025
Bonus:
Now, let’s go to Toronto and hear what their Chinese mayor has to say about the tariffs.
(Warning: Do NOT drink anything while watching this parody video)
Olivia Chow talks Tariffs. pic.twitter.com/Dej63JVqZd
— Ben Bankas (@BenBankas) April 15, 2025
In your honest opinion?
This is a Guest Post from our friends over at WLTReport.
