
herabsetzen
to reduce
To reduce or lower the price, value, amount, or level of something.
Das Geschäft hat die Preise für Winterjacken stark herabgesetzt.
The store greatly reduced the prices of winter jackets.
to reduce / to belittle
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to reduce
To reduce or lower the price, value, amount, or level of something.
Das Geschäft hat die Preise für Winterjacken stark herabgesetzt.
The store greatly reduced the prices of winter jackets.

to belittle
To devalue, disparage, or treat someone or something with contempt in order to diminish their reputation or worth.
Es ist unfair, die Leistung anderer herabzusetzen, nur weil man selbst unzufrieden ist.
It is unfair to belittle other people's performance just because you yourself are dissatisfied.
'Herabsetzen' (to reduce / to belittle) is a separable verb. The prefix 'herab-' comes at the end in a main clause. In a subordinate clause or with a modal verb, the verb stays together.
Der Händler setzt die Preise für Obst herab.
The merchant reduces the prices of fruit.
The verb consists of the directional syllable 'herab' (downward) and the verb 'setzen' (to set/put). So the basic idea is to 'set' something at a lower level, whether it is a price or a person's reputation.
Man sollte die Dosis des Medikaments langsam herabsetzen.
One should reduce the dose of the medication slowly.
The object of the sentence reveals the meaning. If it is about numbers, prices, or quantities, it means 'reduzieren' (to reduce). If it refers to a person or their performance, it means 'abwerten' (to devalue/belittle).
Die Firma musste die Produktion herabsetzen.
The company had to reduce production.
In the meaning 'reduzieren' (to reduce), the verb is often combined with measurable things. Typical objects are: reduce the price, the costs, the speed, or the requirements.
Wegen der Bauarbeiten wurde die erlaubte Geschwindigkeit auf 30 km/h herabgesetzt.
Because of the construction work, the permitted speed was reduced to 30 km/h.
When 'herabsetzen' (to belittle) refers to people, it has a strongly negative meaning. It describes the attempt to deliberately diminish a person's worth or reputation.
Niemand hat das Recht, dich vor anderen herabzusetzen.
No one has the right to belittle you in front of others.
to reduce
Both words can describe a reduction in quantity, price, or level. Reduzieren generally describes something becoming less, while herabsetzen places more emphasis on the transition to a lower value or level. Use reduzieren for a straightforward reduction, and herabsetzen when a specific new value has been explicitly set.

Die Stadt setzt die Gebühr für den Bus auf zwei Euro herab.
The city is reducing the bus fare to two euros.
Die Stadt reduziert die Gebühr für den Bus um zehn Prozent.
The city is reducing the bus fare by ten percent.