Trump proposed to lower tariffs on Chinese imports to 80% from 145% on eve of negotiations with the country's third-largest trading partner.

Trump’s escalation sent financial markets tumbling and left U.S. retailers warning that they might run out of goods as U.S.-China trade implodes. U.S. consumers, worried about the prospect of empty shelves and higher prices, are losing confidence in the economy.

Trade talks between the United States and China have begun in Geneva, Switzerland, Chinese state media reported on Saturday, a nascent sign of a thaw in the trade war sparked by President Donald Trump’s massive tariffs.