Bloomberg News reported on May 8 (local time), citing anonymous sources, that the Donald Trump administration is considering a significant reduction in tariffs during trade negotiations with China to be held in Switzerland this weekend. The aim is to ease tensions and mitigate the economic damage that both countries have already begun to feel.
Sources familiar with the negotiation preparations said that the U.S. side is aiming to lower tariffs on Chinese goods to below 60% as a first step, and they believe this is a level that China could also accept. The sources added that if progress is made during this weekend's talks, the tariff reduction could be implemented as early as next week.
The sources noted that this round of negotiations is likely to be more of a preliminary exchange in which both sides express their grievances, rather than a full-scale resolution of key issues. However, they also emphasized that the situation remains fluid, and there is no guarantee that tariffs will be reduced in the near future.
Additionally, the sources said that lifting China's restrictions on rare earth exports ranks high on the list of U.S. priorities. This is because China's export restrictions have caused disruptions in the supply of rare earths to a wide range of U.S. industries.
Furthermore, there has reportedly already been progress on the fentanyl issue. The sources said that a separate negotiation to reduce exports of fentanyl ingredients from China could be held soon.
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