06:55 AM EDT, 05/09/2025 (MT Newswires) -- The US administration is considering a major reduction in tariffs on Chinese goods during upcoming talks in Geneva, Bloomberg reported Friday, citing unnamed sources familiar with the preparations.

According to the sources, the US delegation, led by Treasury Secretary Scott Bessent, aims to lower tariffs to below 60% as an initial step, which they believe China may reciprocate. The report said that if an agreement is reached, the reductions could take effect as early as next week. However, the weekend talks are expected to be largely exploratory, and there is no assurance that tariff levels will decline in the near term.

The report said the US is also pushing for the removal of China's export restrictions on rare earth materials critical to several industries. In addition, some progress has reportedly been made in discussions aimed at stopping Chinese exports of ingredients used to manufacture drugs such as fentanyl.

When contacted by Bloomberg, both the Treasury Department and the office of US Trade Representative Jamieson Greer, who will also participate in the talks, declined to comment. White House spokesman Kush Desai said the objective of the talks is "to advance President Trump's America First economic agenda toward fair and reciprocal trade relations."

The White House did not immediately respond to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)