President Donald Trump signaled Tuesday that his administration is considering a significant reduction in tariffs on Chinese imports, which currently stand at 145%, as negotiations have continued.
The signal comes after global markets reeled from escalating trade tensions between the world’s two largest economies.
“One hundred forty-five percent is very high, and it won’t be that high,” Trump told reporters in the Oval Office. “It will come down substantially, but it won’t be zero.”
The potential tariff reduction comes after weeks of market volatility triggered by the administration’s aggressive trade policies. According to sources familiar with the matter cited by The Wall Street Journal, the administration is considering cutting the tariffs by more than half as a gesture of good will, with one senior White House official suggesting rates could drop to between 50% and 65%.
Another option under consideration is a tiered approach similar to one proposed by the House committee on China last year: 35% levies for items deemed non-threatening to national security, with rates of at least 100% maintained for strategic goods. That proposal had suggested phasing in these rates over five years.
The White House maintains that any concessions would be part of a negotiation strategy rather than a unilateral move.
“President Trump has been clear: China needs to make a deal with the United States of America,” White House spokesman Kush Desai said in a statement. “When decisions on tariffs are made, they will come directly from the President. Anything else is just pure speculation.”
Trump’s comments reflect a possible shift in approach after a rapid escalation of trade hostilities. Tariffs on Chinese goods started at 34% before climbing to the current 145% after Beijing implemented retaliatory measures.
China has responded forcefully to Trump’s tariff policies with countermeasures including raising duties on American goods to 125%, adding U.S. companies to export control lists, restricting exports of critical minerals used in technology and defense, limiting Hollywood movies in the country, and even returning Boeing jets intended for Chinese airlines.
Treasury Secretary Scott Bessent reportedly told an investor summit Tuesday that the standoff between Washington and Beijing was “unsustainable,” suggesting internal administration concerns about the economic impact of prolonged trade tensions.
Chinese officials have publicly taken a defiant stance, with Foreign Ministry spokesperson Guo Jiakun stating that Washington should “stop its threats and coercion, and engage with China on the basis of equality, mutual respect and reciprocity.”
Within China, the hashtag “Trump chickened out” began trending on the social media platform Weibo following the president’s comments, accumulating over 150 million views.
Trump expressed optimism about future relations with China despite the tensions and ongoing negotiations.
“We’re going to be very good to China. I have a great relationship with President Xi,” he said. “I think they’re going to be happy, and I think we’re going to live together very happily and ideally work together. I think it’s going to work out very well.”
The White House appears to be receiving proposals from multiple nations seeking to avoid similar tariff escalations. Press Secretary Karoline Leavitt told reporters Tuesday that the administration has received “18 proposals on paper” from various countries, suggesting a broader effort to reshape global trade relationships.