US President Donald Trump signalled a possible shift in his trade war with China on Tuesday, indicating that the steep tariffs imposed on Chinese imports may be significantly reduced if a deal is reached. This softer tone, following weeks of escalating measures and market turmoil, suggests the White House may be backing away from its earlier aggressive stance.
“145% is very high and it won’t be that high,” Trump told reporters in the Oval Office. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.” He was referring to the effective tariff rate currently applied to many Chinese goods after a series of tit-for-tat hikes.
A recent White House fact sheet had said China faces up to 245% tariff. However, this figure refers to the cumulative effect of multiple tariffs on specific products, such as electric vehicles and syringes, rather than a new, blanket 245 percent tariff imposed by the Trump administration.
US President Donald Trump on Tuesday said he plans to be “very nice” to China in any trade talks and that tariffs will drop if the two countries can reach a deal, a sign he may be backing down from his tough stance on Beijing amid market volatility.
“It will come down substantially but it won’t be zero,” Trump said Tuesday in Washington, following earlier comments from Treasury Secretary Scott Bessent that the standoff was unsustainable. Trump added that “we’re going to be very nice and they’re going to be very nice, and we’ll see what happens.”
Responding to Trump’s recent comments on easing tariffs, China’s Foreign Ministry said the United States “can’t say it wants to reach an agreement with China and on the other hand keeps exerting extreme pressure.” The ministry said, “This is not the right way to deal with China and it is not feasible.” The ministry urged the US to conduct dialogue with China on the basis of equality and mutual benefit, saying such an approach was necessary for any future trade deal to take shape.
Also Read: China says door for US trade talks 'wide open'
Trump made the comments when asked about Treasury Secretary Scott Bessent’s remarks earlier in the day that the high tariff rates between the United States and China have effectively embargoed trade between the economies.
Bessent said at a private investment conference hosted by JP Morgan Chase that the trade war with China is unsustainable and he expects the battle to de-escalate in the very near future, a person familiar with the matter confirmed to CNN.
Instead of a hard break or complete decoupling between the United States and China, Bessent told investors that the goal is to have a rebalancing of trade, the source told CNN.
Still, the Treasury chief said a comprehensive deal could take two to three years, Bloomberg reported. He also reiterated his view that China has stifled its consumer economy and favoured manufacturing at the US’s expense, saying that any agreement would require a rebalancing of trade that allowed the US to increase manufacturing.
Negotiations with China over such a deal haven’t started yet, he said, according to Bloomberg.
Trump also said he didn’t see the need to say he’d “play hardball” with Chinese leader Xi Jinping and that during discussions he wouldn’t raise Covid-19 — an issue that is very politically sensitive in Beijing. The White House recently launched a website that suggested the virus came from a lab in China, irking the nation’s diplomats.
Trump’s comments come as US stocks and Treasuries have been battered since he rolled out sweeping tariffs on April 2, later announcing a 90-day reprieve for most nations. The 145% duties Trump has placed on Chinese shipments this year remain in place, though he’s made exceptions for computers and popular consumer electronics.
In response, China has been intensifying its outreach to third countries in recent weeks, even warning others not to strike trade deals with the US that hurt Beijing’s interests. During a meeting with Azerbaijan’s President Ilham Aliyev on Wednesday, Chinese leader Xi Jinping reiterated that tariff and trade wars undermine the rights and interests of all countries.
Foreign Minister Wang Yi told his counterparts in the UK and Austria that China’s stance toward the US aims at not only “safeguarding its own interests, but protecting international rules and multilateral trade system.”
China’s premier, Li Qiang, reportedly wrote a letter to Japanese Prime Minister Shigeru Ishiba this week, calling for a coordinated response to Trump’s tariffs.
China hasn’t officially responded to Trump’s pledge to play “nice” but the media outlet Cailian called it “a sign that Trump is already softening stance on his signature tariff policies.” Trump “chickening out” was among the top trending topics on China’s Weibo social media website on Wednesday.
Beijing had indicated earlier this month that it wants to see a number of steps from the Trump administration before agreeing to any discussions, especially reining in disparaging remarks by members of his cabinet.
Beijing had earlier expressed displeasure with comments Vice President JD Vance made about “Chinese peasants,” with one diplomat calling them “ignorant and disrespectful.”
“145% is very high and it won’t be that high,” Trump told reporters in the Oval Office. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.” He was referring to the effective tariff rate currently applied to many Chinese goods after a series of tit-for-tat hikes.
A recent White House fact sheet had said China faces up to 245% tariff. However, this figure refers to the cumulative effect of multiple tariffs on specific products, such as electric vehicles and syringes, rather than a new, blanket 245 percent tariff imposed by the Trump administration.
US President Donald Trump on Tuesday said he plans to be “very nice” to China in any trade talks and that tariffs will drop if the two countries can reach a deal, a sign he may be backing down from his tough stance on Beijing amid market volatility.
“It will come down substantially but it won’t be zero,” Trump said Tuesday in Washington, following earlier comments from Treasury Secretary Scott Bessent that the standoff was unsustainable. Trump added that “we’re going to be very nice and they’re going to be very nice, and we’ll see what happens.”
Responding to Trump’s recent comments on easing tariffs, China’s Foreign Ministry said the United States “can’t say it wants to reach an agreement with China and on the other hand keeps exerting extreme pressure.” The ministry said, “This is not the right way to deal with China and it is not feasible.” The ministry urged the US to conduct dialogue with China on the basis of equality and mutual benefit, saying such an approach was necessary for any future trade deal to take shape.
Also Read: China says door for US trade talks 'wide open'
Trump made the comments when asked about Treasury Secretary Scott Bessent’s remarks earlier in the day that the high tariff rates between the United States and China have effectively embargoed trade between the economies.
Bessent said at a private investment conference hosted by JP Morgan Chase that the trade war with China is unsustainable and he expects the battle to de-escalate in the very near future, a person familiar with the matter confirmed to CNN.
Instead of a hard break or complete decoupling between the United States and China, Bessent told investors that the goal is to have a rebalancing of trade, the source told CNN.
Still, the Treasury chief said a comprehensive deal could take two to three years, Bloomberg reported. He also reiterated his view that China has stifled its consumer economy and favoured manufacturing at the US’s expense, saying that any agreement would require a rebalancing of trade that allowed the US to increase manufacturing.
Negotiations with China over such a deal haven’t started yet, he said, according to Bloomberg.
Trump also said he didn’t see the need to say he’d “play hardball” with Chinese leader Xi Jinping and that during discussions he wouldn’t raise Covid-19 — an issue that is very politically sensitive in Beijing. The White House recently launched a website that suggested the virus came from a lab in China, irking the nation’s diplomats.
Trump’s comments come as US stocks and Treasuries have been battered since he rolled out sweeping tariffs on April 2, later announcing a 90-day reprieve for most nations. The 145% duties Trump has placed on Chinese shipments this year remain in place, though he’s made exceptions for computers and popular consumer electronics.
In response, China has been intensifying its outreach to third countries in recent weeks, even warning others not to strike trade deals with the US that hurt Beijing’s interests. During a meeting with Azerbaijan’s President Ilham Aliyev on Wednesday, Chinese leader Xi Jinping reiterated that tariff and trade wars undermine the rights and interests of all countries.
Foreign Minister Wang Yi told his counterparts in the UK and Austria that China’s stance toward the US aims at not only “safeguarding its own interests, but protecting international rules and multilateral trade system.”
China’s premier, Li Qiang, reportedly wrote a letter to Japanese Prime Minister Shigeru Ishiba this week, calling for a coordinated response to Trump’s tariffs.
China hasn’t officially responded to Trump’s pledge to play “nice” but the media outlet Cailian called it “a sign that Trump is already softening stance on his signature tariff policies.” Trump “chickening out” was among the top trending topics on China’s Weibo social media website on Wednesday.
Beijing had indicated earlier this month that it wants to see a number of steps from the Trump administration before agreeing to any discussions, especially reining in disparaging remarks by members of his cabinet.
Beijing had earlier expressed displeasure with comments Vice President JD Vance made about “Chinese peasants,” with one diplomat calling them “ignorant and disrespectful.”
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