Trump indicates massive reduction in the China tariffs

Von WOM

Hong Kong/Washington-US President Donald Trump has indicated that he could possibly rethink his attitude in the trade war with China. He explained that the high tariffs are "significantly reduced, but it will not be zero."

rhetorical turn in the trade conflict

Trump's statements that he made during a press conference in the White House seem to mark a withdrawal from a series of hard rhetoric, which drove the tariffs to Chinese goods to over 145 %. "145 % are very high and it won't be that high," said Trump in a question and answer round with journalists in the Oval Office. "It won't be that high. It will fall significantly. But it won't be zero."

background information on the tariffs

Trump commented on the comments by Finance Minister Scott Bessent, who used to say that the high customs rates between the USA and China had actually blocked the trade between the two economies. At a private investment conference of JP Morgan Chase, Bessent said that the trade war with China was not sustainable and that he expects the conflict to be defused in the near future, as a person trusted with the situation CNN confirmed.

global effects of the trade war

The two largest economies in the world have imposed on each other record duties, which shakes the markets worldwide, disrupted supply chains and fueled fear of recession. So far, China has struck a defiant tone and refused to give in. Instead, it reacted with an increase in tariffs to US goods to 125 %, added other American companies to its export control list and the list of unreliable facilities and restricted the export of critical minerals, which are used in everything from iPhones to rocket systems.

China's reactions and strategies

Beijing has also tried to put pressure on important US industries by restricting the number of Hollywood films shown in China and returning at least two Boeing jets that were intended for use by Chinese airlines. Despite these tensions, Trump has insisted that he maintains a "very good relationship" with China's head of state Xi Jinping and is waiting for XI to contact him. CNN reported that Trump told his team that the United States would not take the first step.

Hope for negotiations

Instead of contacting Trump to negotiate about tariffs, XI has launched a diplomatic offensive with other trading partners to counteract the US efforts to areolate China economically. On Tuesday, Trump again expressed his hope that XI would come to the table of negotiations - and promised to be "very nice".

Trump's vision for a collaboration

When he was asked whether the USA would negotiate with China or XI hard to achieve a deal, or whether the topic of Covid-19 would be discussed, Trump quickly replied: "No." He added: "No, no, we will be very nice. You will be very nice and we will see what happens. But in the end you have to do a deal, because otherwise you will not be able to act in the USA and we want you to be there." He emphasized: "I think we will live together very happily and ideally work together, so I think that it will go out very well."

cnn’s John Towfighi and Matt Egan contributed to reporting.