Source: Sharecast
Ahead of talks with China in Geneva, Switzerland this weekend, Trump wrote on his Truth Social site: "80% Tariff on China seems right! Up to Scott B."
He also said that China should "open up its market" to the USA. "Would be so good for them!!!," he wrote, adding: "closed markets don’t work anymore!!!"
Russ Mould, investment director at AJ Bell, said this weekend’s trade talks "could be make or break for the Chinese economy".
"New data shows that China’s exports went bananas in April as overseas manufacturers raced to stockpile materials from the Asian superpower for fear of tariffs getting out of control," he said.
"Failure to convince Trump to ease back on tariffs would mean China has to lean even harder on domestic consumption to prop up its lofty economic growth goals, and that’s already proved to be a challenge even before Trump returned to the White House."
Danske Bank said: "Tariffs far above 100%, as they currently have against each other, are clearly going to have a seriously negative effect on both countries' economies as supply chains are disrupted and there is a risk of empty shelves in US stores.
"Hence, there is a strong incentive to reach a deal to lower the tariffs. In our interpretation, markets are expecting tariffs to land around 60%, and there are possibilities for both positive and negative surprises relative to that."