U.S. eyes tariff cut as China talks focus on rare metals

The Trump administration is considering a significant reduction in tariffs during the weekend negotiations with China, aiming to ease tensions and mitigate economic losses that both sides start to feel, writes Bloomberg.

People familiar with the preparations for the talks, set to begin in Geneva on Saturday (the meeting is scheduled for May 10 and 11), under the leadership of U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, indicate that the American side has set a goal of reducing tariffs below 60 percent.

"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," Bloomberg sources claim.

Officially, the American administration is avoiding declarations regarding expectations for the U.S.-China meeting. The Treasury Department, along with the office of U.S. Trade Representative Jamieson Greer, who is joining Bessent in the talks, declined to comment.

In a statement provided to Bloomberg, White House spokesperson Kush Desai stated: "The administration’s only goal with these talks is to advance President Trump’s America First economic agenda towards fair and reciprocal trade relations. Any discussion about ‘target’ tariff rates is baseless speculation."

Previously, President Donald Trump ruled out lowering the high tariffs on China, which currently stand at approximately 145 percent. CNBC reported that Trump firmly responded "no" when asked if he is considering easing tariffs to encourage China to negotiate.

China confirmed that it was the U.S. that initiated the meeting, and Beijing remains strongly opposed to the tariff increases introduced by Trump.