Update (0745ET):

President Trump posted on Truth Social, "80% Tariff on China seems right!" while noting that the final decision rests with U.S. Treasury Secretary Scott Bessent.

The comment lends credibility to an earlier New York Post report suggesting the administration is considering cutting tariffs on Chinese imports from 145% to a significantly lower baseline.

Trump also said: 

"CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON'T WORK ANYMORE!!!"

In markets, S&P 500 futures puked, then recovered some losses. Most of the overnight gains have been erased. 

Perhaps traders were expecting a higher percentage of tariffs to be removed ahead of Bessent and US Trade Representative Jamieson Greer's meeting on Saturday with Chinese Vice Premier He Lifeng in Switzerland.

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U.S. Treasury Secretary Scott Bessent and his Chinese counterpart are set to begin the first round of trade talks in Switzerland on Saturday. Traders and analysts are looking to yesterday's "breakthrough" U.S.-U.K. trade deal as a potential preview of what may be announced over the weekend or early next week—possibly signaling a peak in the ongoing trade war.

According to a source familiar with the discussions, the New York Post reports that the Trump administration is weighing a plan to slash tariffs on Chinese imports from 145% to between 50% and 54%. The same source said levies on neighboring South Asian countries would also be reduced to 25%.

"They are going to be bringing it down to 50% while the negotiations are ongoing," the source said, referring to tariffs on China. 

Here's more color from NYPost:

Insiders said the 50%-to-54% range — down from the triple-digit level that Treasury Secretary Scott Bessent said this week "isn't sustainable" this week — is in keeping with rates that were discussed last month when President Trump met with the bosses of the three biggest retailers in the U.S.

Market participants are considering Thursday's U.S.-U.K. trade framework as a potential preview of what to expect in upcoming trade announcements—not just with China but with dozens of other countries. The deal hints at broad tariff reductions and expanded market access for American exports, particularly in agriculture, energy, and industrial goods. However, as with the U.K. framework, a baseline 10% tariff appears likely to remain in place.

Last week, Goldman offered some good news: peak trade war.

Earlier this week, Goldman chief economist Jan Hatzius told clients, "The mood music with China has improved, and we expect the U.S. tariff rate on China to drop from around 160% to around 60% relatively soon. (China is likely to reduce tariffs on the U.S. by a similar amount.)"

Plus, the Milken Institute Global Conference attendees in Beverly Hills on Monday "warmed up" to the tariff environment. 

Jay Foreman, CEO of Basic Fun—which manufactures retro toys like Tonka Trucks, Care Bears, and My Little Pony in China—told NYPost that "there will be an adjustment" in tariff policy "by the end of this week or next," adding that it could begin a surge in orders from China.

"We are hearing China at 50% to 54% and [other] Asian countries at 25%," said Lawrence Rosen, chairman of New Jersey-based arts-and-crafts distributor Cra-Z-Art. 

During the US-UK trade deal, Trump told investors, "Better buy stocks now."