US President Donald Trump has confirmed that tariffs on Chinese imports will be significantly reduced from their current 145% level, though he ruled out a complete removal of the duties. The announcement, made during a White House press conference on Tuesday, has injected new uncertainty into the already strained US-China trade relationship.
Earlier in the day, US Treasury Secretary Scott Bessent described the current tariff rates as “unsustainable,” forecasting a potential de-escalation in trade tensions. However, Trump appeared more reserved, stating, “They won’t be that high,” while asserting the US was “doing fine with China.”
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The current tariff standoff has seen both sides slap steep duties on each other’s goods, with China responding to US tariffs with 125% on American imports. These measures have had a ripple effect on global markets, contributing to higher interest rates and investor anxiety.
Despite the friction, Trump emphasized a cooperative tone, expressing optimism about the US-China relationship and speaking warmly of Chinese President Xi Jinping. However, Xi has warned that escalating trade tensions could jeopardize global stability, and Chinese media outlets have labeled Trump’s stance as “populist protectionism.”
While markets rallied slightly on the prospect of easing tariffs, key questions remain about the direction of US trade policy. The administration continues to engage other global trade partners, pushing for reciprocal terms, even as Trump pressures the Federal Reserve for proactive interest rate cuts to boost the US economy.
