Trump hints at massive reduction in China tariffs

Trump hints at massive reduction in China tariffs

Hong Kong/Washington – US President Donald Trump has hinted that he may reconsider his stance on the trade war with China. He explained that high tariffs on Chinese goods “will be significantly reduced, but it will not be zero.”

Rhetorical turnaround in the trade conflict

Trump's comments, made during a White House news conference, appeared to mark a retreat from a series of harsh rhetoric that pushed tariffs on Chinese goods to more than 145%. “145% is very high and it won’t be that high,” Trump said in a question-and-answer session with reporters in the Oval Office. "It won't be nearly as high. It will go down significantly. But it won't be zero."

Background information on tariffs

Trump was commenting on Treasury Secretary Scott Bessent's comments earlier in the day that high tariffs between the United States and China had effectively blocked trade between the two economies. Bessent told a JP Morgan Chase private investment conference that the trade war with China is not sustainable and he expects the conflict to ease in the near future, a person familiar with the situation confirmed to CNN.

Global impact of the trade war

The world's two largest economies have imposed record tariffs on each other, rattling markets worldwide, disrupting supply chains and stoking recession fears. So far, China has adopted a defiant tone and refused to back down. Instead, it responded by increasing tariffs on U.S. goods to 125%, adding more American companies to its export control list and unreliable facilities list, and restricting exports of critical minerals used in everything from iPhones to missile systems.

China's reactions and strategies

Beijing has also tried to put pressure on key U.S. industries by limiting the number of Hollywood films shown in China and returning to the U.S. at least two Boeing jets intended for use by Chinese airlines. Despite these tensions, Trump has insisted that he has a "very good relationship" with Chinese leader Xi Jinping and is waiting for Xi to contact him. CNN reported that Trump told his team the US would not make the first move.

The hope for negotiations

Instead of reaching out to Trump to negotiate tariffs, Xi has launched a diplomatic offensive with other trading partners to counter U.S. efforts to isolate China economically. On Tuesday, Trump again expressed his hope that Xi would come to the negotiating table - and promised to be "very nice."

Trump's vision for cooperation

When asked whether the U.S. would negotiate hard with China or Xi to reach a deal or whether the issue of Covid-19 would come up, Trump quickly replied: "No." He added: "No, no, we'll be very nice. They'll be very nice and we'll see what happens. But ultimately they have to make a deal because otherwise they won't be able to trade in the US and we want them to be there." He emphasized: "I think we will live together very happily and ideally work together, so I think it will end very well."

CNN's John Towfighi and Matt Egan contributed reporting.