President Donald Trump has signaled a willingness to reduce the steep tariffs imposed on Chinese imports, marking a potential shift in the ongoing U.S.-China trade tensions. Currently, U.S. tariffs on Chinese goods stand at 145%, with China retaliating with 125% tariffs on American products .

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet with China’s Vice Premier He Lifeng in Switzerland from May 9 to 12. These talks aim to explore avenues for de-escalating the trade war, although no major agreements are expected at this stage .

The economic impact of the tariffs has been significant. In the U.S., concerns about stagflation—a combination of slowing growth and rising prices—have emerged, partly due to the tariffs’ effect on demand and costs . In China, factory closures and job losses have led to widespread worker protests, highlighting the domestic strain caused by the trade conflict .

While President Trump has expressed that tariffs will “come down substantially,” he maintains that they “won’t be zero,” indicating a preference for maintaining some level of trade protection . China has responded cautiously, stating that it is evaluating the U.S. outreach but has not committed to any concessions .

The upcoming talks in Switzerland represent a tentative step toward easing trade tensions between the world’s two largest economies. However, significant challenges remain, and both sides appear to be approaching negotiations with caution.