Trump Hints Tariffs on China May Drop as Talks Set to Begin

US President Donald Trump has hinted that US tariffs on goods from China may come down as top trade officials from the world’s two biggest economies are set to hold talks.

Referring to the new import taxes of up to 145 per cent imposed on China since he returned to the White House, Trump said: “You can’t get any higher. It’s at 145, so we know it’s coming down.”

Trump made the comments during an event to unveil a tariffs deal with the UK – the first such agreement since he hit countries around the world with steep levies in April.

The meeting in Switzerland this weekend is the strongest signal yet that the two sides are ready to deescalate a trade war that has sent shockwaves through financial markets.

Trump described the talks with China as very friendly.

China’s vice-foreign minister also struck a confident note ahead of the talks, saying Beijing has full confidence in its ability to manage trade issues with the US.