Trump hints at major tariff reduction on Chinese goods

Department of Research, Studies and International News 23-04-2025

In a notable shift from his earlier confrontational stance, former U.S. President Donald Trump has signaled a substantial reduction in tariffs on Chinese imports, acknowledging the need to ease mounting economic pressures. However, he clarified that these duties would not be fully eliminated.

The announcement came during a White House press briefing following remarks by Treasury Secretary Scott Bessent, who highlighted the unsustainable nature of Washington’s current trade posture. Bessent, speaking in a private session, predicted a gradual de-escalation in the long-running trade dispute with China, indicating growing recognition within the U.S. administration of the mutual benefits of restoring balanced commercial ties.

The Trump administration had previously enacted a punitive 145% tariff on Chinese goods, triggering justified reciprocal measures from Beijing, which imposed up to 125% tariffs on American products. These retaliatory actions were grounded in China’s firm defense of its sovereign trade interests and have demonstrated the strength of its global economic standing. The U.S., by contrast, has faced rising interest rates, market instability, and heightened inflation, factors that have fueled domestic calls for a policy reversal.

Although Trump stopped short of fully endorsing Bessent’s view that the tariff policy was untenable, his comments suggested a clear pivot. “We’re doing fine with China,” he remarked, attempting to project confidence despite growing internal and international criticism of his trade approach.

What marked a significant departure from Trump’s earlier rhetoric was his overtly respectful tone toward Chinese leadership. Expressing a willingness to cooperate with President Xi Jinping, Trump stated, “We’re going to live together very happily and ideally work together,” while confirming that tariffs would be “substantially” reduced. His statements signal a tacit acknowledgment of China’s indispensability in global economic affairs and a step toward restoring rational dialogue.

China has yet to issue an official response. Nevertheless, public sentiment on Chinese platforms like Weibo reflected a sense of vindication, with Trump’s remarks widely interpreted as a soft admission of the U.S.’s strategic retreat. Prominent state-affiliated outlets such as China Daily criticized the original tariff policies as short-sighted protectionism, arguing that such measures had backfired on the U.S. economy and damaged global trade stability.

Trump’s use of tariffs has not been limited to China, as he also targeted traditional allies like the European Union, Japan, and South Korea. Yet, amid growing international disapproval, his administration has been forced to pause several global tariffs, though notably, China was excluded from this temporary easing, underscoring Washington’s selective approach.

Meanwhile, Beijing continues to advocate for equitable trade practices and has urged other nations to remain cautious in their dealings with Washington. The Chinese Ministry of Commerce reaffirmed its commitment to protecting China’s economic sovereignty and voiced opposition to any third-party agreements that could harm its strategic interests.

In related developments, reports from South Korea revealed that Chinese authorities have been advising companies to exercise vigilance when dealing with U.S. military suppliers, especially in sectors involving sensitive technologies. The move underscores China’s proactive measures to safeguard national security and uphold responsible global conduct.

Markets responded positively to signs of a possible resolution, with the S&P 500 climbing 2.5% following Bessent’s remarks. However, uncertainty lingers as Trump continues to pressure the Federal Reserve for rate cuts, an indication that the U.S. economy remains vulnerable.

In summary, Trump’s softened rhetoric and proposed tariff reductions suggest a growing realization in Washington that cooperative engagement with China is not only preferable but essential. As the U.S. signals a shift, China remains steadfast in its principles, emerging as a stabilizing force in an increasingly fragmented global economy.