“CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!,” he said in a separate post.
Bessent and US Trade Representative Jamieson Greer are set to begin talks with Chinese Vice Premier He Lifeng in Switzerland this weekend, the first public discussions between the world’s two largest economies on defusing a trade war that has seen Trump impose 145% levies on China and Beijing retaliate with 125% duties on many American goods.
Trump’s comments provided a stark dose of reality to investors who have been anticipating the start of negotiations between the two countries and eager for any sign that the American president would seek an off-ramp to ease a trade war that has roiled equity and bond markets and raised risks of a global downturn.
Later at the White House, Press Secretary Karoline Leavitt said Trump “threw out” the number, but that any reduction would require a move from the Chinese.
See also: Trump says US to impose 30% tariffs on EU, Mexico next month
“The president still remains with his position that he is not going to unilaterally bring down tariffs on China,” Leavitt said. “We need to see concessions from them as well.”
S&P 500 futures briefly turned negative and, while positive again, are well off session highs. European stocks trimmed gains and the Mexican peso reversed gains. Two-year US yields fell.
Commerce Secretary Howard Lutnick said on Fox News Friday evening that there was “no chance” that tariffs would be completely paused no matter the outcome of the weekend talks. If those negotiations go well, he added, the levies “come down to a human level. To a level where we do business. There are significant tariffs, the president is going to keep significant tariffs on trade with China. That is his objective. That’s his expectation. That should be everybody’s expectation.”
See also: Trump threatens 35% Canada tariff, floats higher blanket rates
Trump levied high tariffs on dozens of nations in April only to quickly pause those import taxes to allow trading partners a 90-day window to negotiate deals with his administration. On Thursday, Trump touted the first of those agreements with the UK, though that deal appeared to fall well short of the “full and comprehensive” compact he had promised with many of the critical details being left to further negotiations.
Talks with China promise to be even more complicated. Trump earlier this week ruled out preemptively lowering taxes on China in order to help juice the negotiations.
While the president has said in that he is willing to lower the tariffs on China at some point, he and his advisers have also said US consumers are willing to bear disruptions from the trade war in the form of higher prices and fewer choices to allow his bid to bring more manufacturing jobs to the country to succeed.
