End of US-China trade war? Trump now says tariffs on China will be 'significantly reduced'
By yash chouhan 2025-04-23 12:15:58
Trump Hints at Big China Tariff Reductions
US President Donald Trump has suggested that the historically high tariffs he has imposed on Chinese imports will not last long. Speaking from the Oval Office on Tuesday, Trump told reporters that the 145% tariff rate will eventually be "significantly reduced", although he maintained a confident tone about the US bargaining position.
"145% is very high, and it won't be that high," Trump said. "No, it won't be anywhere near that high. It will be significantly reduced. But it won't be zero - it used to be zero. We were just ruined. China was cheating us."
"We're going to be very nice, they're going to be very nice, and we'll see what happens. But eventually," he said, "they're going to have to make a deal because otherwise they won't be able to make a deal in the United States."
President Trump says tariffs with China will be significantly reduced |
Trump's change in tone came shortly after Treasury Secretary Scott Bessant warned behind closed doors that the ongoing US-China trade impasse could not be sustained. "Nobody thinks the current situation is sustainable," Bessant reportedly told investors at a JPMorgan Chase forum in Washington.
The current tariff scenario sees multiple rounds of hikes, with Chinese imports now subject to tariffs totaling 145%. In response, China has imposed retaliatory tariffs of 125% on US exports.
Electronics such as smartphones and semiconductors remain exempt, while a 20% "blanket" tariff linked to concerns over fentanyl remains in place.
Formal negotiations between Washington and Beijing have not begun. However, White House press secretary Caroline Levitt said more than 100 countries have expressed interest in the new trade arrangement following Trump's recent announcement of global tariffs - though China is not yet among them.
Despite the absence of talks with Beijing, Levitt said the administration is "setting the stage" for a future deal with China and is "doing very well" on trade overall.
Market reactions indicate cautious optimism. US stock indexes rose more than 2% after Bessant's comments, indicating that investors may be betting on a future easing of tensions - even if the road to any agreement is long.
