The Trump administration is considering a significant reduction in tariffs during weekend talks with China to de-escalate tensions and alleviate the economic strain both countries are beginning to feel, according to Bloomberg.

Negotiations are set to begin in Geneva, Switzerland on Saturday, led by US Treasury Secretary Scott Bessent and Chinese Vice premier He Lifeng.

The U.S. side is targeting an initial reduction of tariffs to below 60%, a move they believe China may be willing to reciprocate. If progress is made during the two days of talks, the tariff cuts could be implemented as early as next week, said sources familiar with the preparations for the talks.

While expectations remain cautious, the talks are expected to be more exploratory—focused on identifying key issues rather than delivering immediate solutions, the sources said. They emphasized the situation remains fluid and that a near-term tariff rollback is not guaranteed.

Among Washington’s top priorities is China’s removal of export restrictions on rare earth materials critical to manufacturing magnets and other industrial components. The U.S. is also seeking cooperation on reducing Chinese exports of ingredients used to produce fentanyl, an opioid responsible for a surge in overdose deaths across the country. Sources indicated that separate discussions on that issue could soon follow.

In a statement, White House spokesman Kush Desai said, “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.”

Currently, the US imposes a 145% tariff on Chinese imports, while China retaliates with a 125% tariff, leading to a significant economic standoff between the world's two largest economies. President Trump hinted that US tariffs on Chinese goods might decrease as top trade officials prepare for talks, following the trade deal announcement with the UK on Thursday.

"You can't get any higher. It's at 145, so we know it's coming down," Trump said, referring to the new import taxes of up to 145% imposed on China since he returned to the White House. “I think we are going to have a good weekend with China. I do think they have far more to gain than we do, in a sense," Trump added.

Asked if he would speak to Chinese President Xi after the talks, Trump replied, "I might, yeah, sure."

“De-escalating, bringing those rates down to where they could, where they should be, I think it’s Scott Bessent’s goal. I think it’s the Chinese delegation’s goal as well,” Secretary of Commerce Howard Lutnick said. “And that’s what the president hopes is a good outcome, a de-escalated world where we return to normal trade relations and work on a comprehensive deal together.”

Treasury Secretary Bessent has proposed pausing tariffs on specific items. Tariff exemptions on “items that parents need for their babies” are “under consideration,” Bessent testified before the House Financial Services Committee on Wednesday, addressing the impacts on American families.

Meanwhile, Chinese officials have been cautious about their objectives for the talks. On Thursday, Beijing reiterated its call for the Trump administration to cancel unilateral tariffs on China, with Commerce Ministry spokesman He Yadong stating that the US “needs to show sincerity in negotiations and be prepared to rectify its wrongdoing.”

Xi and Trump met in G20 2017