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US President Donald Trump said he believed trade negotiations launching this weekend with China would result in tangible progress, predicting Beijing would be willing to make concessions and saying he could consider cutting punishing tariffs against the country if there was significant momentum.
“I think it’s going to be substantive,” Trump told reporters Thursday in the Oval Office, as he announced a framework trade agreement with the United Kingdom.
Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are set to meet in Switzerland with Chinese Vice Premier He Lifeng on trade in the coming days. Trump said that if talks went well, he could consider lowering the 145% tariff he has imposed on many Chinese goods.
“It could be,” Trump said in response to a question about the possibility. “I mean, we’re going to see. Right now you can’t get any higher. It’s at 145% so we know it’s coming down. I think we’re going to have a very good relationship.”
Markets rose Thursday on optimism about the China talks, as well as Trump’s UK announcement. The S&P 500 extended gains to session highs, climbing about 1.5%, as Treasuries, gold and haven currencies lost steam.
Trump said that promising trade news paired with Republican efforts to pass legislation extending and expanding his signature tax cuts should be reason for investor optimism.
“This country will hit a point that you better go out and buy stock,” Trump said. “Now, let me tell you this, this country will will be like a rocket ship that goes straight up.”
Still, negotiations with China to reduce the punishing tariffs on both countries are likely to prove complicated.
Trump said on Wednesday he planned to raise the case of ex-media mogul Jimmy Lai in the negotiations, in a move likely to provoke Beijing.
“I think talking about Jimmy Lai is a very good idea,” Trump said in a May 7 radio interview with Hugh Hewitt. “We’ll put it down as part of the negotiation.”
Trump also threatened toymaker Mattel Inc., which said earlier this week that it would increase the prices of some of its US toys that were imported from China due to Trump’s tariffs.
“We’ll put 100% tariff on his toys, and he won’t sell one toy in the United States, and that’s their biggest market,” Trump said.