Trump’s Team Weighs Tariff Cuts in China Talks

Maybe this is part of the art of the deal. The Trump administration is weighing a dramatic tariff reduction during weekend talks with China to de-escalate tensions and temper the economic pain both countries are already starting to feel. People familiar with preparations for the talks, which are due to begin in Geneva on Saturday, say the US side has set a target of reducing tariffs below 60% as a first step that they feel China may be prepared to match. Also high on the US wish list is securing the removal of China’s export restrictions on rare earths used to make magnets as a range of industries face disruption, the people said.

Asian stocks gained after President Donald Trump said he believed the weekend negotiations might result in tangible progress, with China making concessions. An initial agreement with the UK also stirred up optimism over more tariff relief, even though US Commerce Secretary Howard Lutnick warned that trade deals with South Korea and Japan could take significantly more time to complete.