Trump Signals Significant Cut to China Tariffs Amid Hopes for Trade Deal
U.S. President Donald Trump has indicated that the 145 per cent tariffs currently imposed on Chinese imports will be “substantially” reduced, suggesting a thaw in ongoing trade tensions between Washington and Beijing.
Speaking at a press conference in the Oval Office on Tuesday, Mr Trump said he believed a trade agreement with China could be reached “fairly quickly,” and stressed he didn’t intend to take a hardline approach.
“It won’t be that high,” he said of the existing tariffs. “They’re going to be happy, and we’re going to get along very well. I think it’ll work out.”
His comments follow a speech by U.S. Treasury Secretary Scott Bessent, who described the current tariff impasse with China as unsustainable and forecast a likely “de-escalation.” However, Bessent noted that formal talks between the two nations had yet to begin.
“China negotiations will be a slog,” Bessent reportedly told a JPMorgan Chase gathering, according to a transcript obtained by AP. “Neither side sees the current situation as sustainable.”
U.S. Hints at Softer Stance
Despite imposing the 145 per cent import tax, which China countered with tariffs of 125 per cent on American goods, Mr Trump insisted he is not planning to “play hardball” and suggested a deal is inevitable.
“If they don’t make a deal, we’ll set the deal,” Mr Trump said. “But we’ll be very good to China.”
The broader tariff strategy, which also includes levies on goods from numerous other countries, has led to stock market volatility and rising interest rates, as investors worry about inflation and slower growth.
Trump has yet to indicate whether he’s spoken directly to Chinese President Xi Jinping. While hinting at easing tariffs for China, he has maintained the 10 per cent base tariff on other nations and continues to pressure global partners to lower trade barriers.
China Warns Against Backdoor Deals
In response, China issued a warning to countries negotiating separately with the U.S., urging them not to strike deals that would come at China’s expense.
“China strongly opposes any deal that undermines its interests,” said the Commerce Ministry, adding that it would respond in kind to any such move.
The ministry described U.S. tariff policies as “economic bullying,” and cautioned against appeasement or short-term gains through trade exemptions.
“Sacrificing long-term interests for temporary benefits will ultimately backfire,” the statement read.
China reiterated its openness to discussions with the U.S., though no official meetings have been announced.
