President Donald Trump said Tuesday he is open to lowering the 145% levies he had placed on Chinese imports
The Trump administration may cut tariffs on Chinese goods by over 50% to ease trade tensions and calm markets, reports The Wall Street Journal.
President Donald Trump said Tuesday he is open to lowering the 145% levies he had placed on Chinese imports. “We’re going to be very nice. They’re going to be very nice,” and tariffs will “come down substantially,” but he also added that “it won’t be zero.”
Officials are discussing different options, including a plan to set lower tariffs—around 35% for non-sensitive items (not related to national security). According to WSJ, tariffs on imports from China may come down to 50%.
The administration temporarily exempted smartphones, computers, and semiconductors from 125% tariffs.
Markets reacted positively
The S&P 500 jumped 3% in mid-morning trading after Trump expressed optimism about rolling back duties on Chinese imports.
However, Treasury Secretary Scott Bessent painted a not-so-rosy picture when he said the administration would not reduce duties unless China first does the same.
Meanwhile, over 100 countries have reached out for trade talks, and 18 have submitted formal proposals.
China’s response
On Wednesday, Beijing said it is open to talks but won’t negotiate if the US keeps making threats.
China has imposed 125% retaliatory tariffs on US goods. Talks on fentanyl and other pressing issues have stalled. Meanwhile, shipping giant Hapag-Lloyd reported that 30% of its US-bound shipments from China were canceled.