The Trump administration is reportedly weighing a possible reduction in tariffs on Chinese imports as part of renewed efforts to ease trade tensions with Beijing. A source familiar with the matter revealed on Wednesday that the potential cuts would be contingent upon ongoing negotiations and would not be enacted unilaterally.
This development comes on the heels of a Wall Street Journal report indicating that the White House is considering slashing its steep tariffs on Chinese goods—a move aimed at de-escalating the prolonged trade rift between the two economic superpowers. According to the Journal, tariffs could be reduced to a range between 50% and 65%, down from the current rate of 145% imposed since President Donald Trump’s return to office in January.
While no final decision has been made, discussions within the administration remain fluid, with multiple options reportedly on the table. The White House has yet to issue an official response to these reports.
Investor sentiment responded positively to the news, with US stocks extending early gains. The benchmark S&P 500 index rose 3.3% by mid-morning on Wednesday, reaching a two-week high. Market optimism had already been bolstered on Tuesday following President Trump’s comments that signalled a more constructive tone on tariffs, as well as his decision to refrain from removing the Federal Reserve chair.
Speaking to reporters on Tuesday, Trump expressed confidence in striking a favourable deal with China, one that would bring down tariffs significantly. “It won’t be that high,” he said in reference to current rates, adding, “It won’t be anywhere near that.” However, he also cautioned, “If they don’t make a deal, we’ll set the deal,” reaffirming his firm stance on protecting American interests.
Additionally, the administration is said to be considering a tiered tariff system akin to a proposal introduced by a House committee on China last year. Under that plan, non-sensitive goods would be taxed at 35%, while imports deemed strategic or vital to national security could face levies of 100% or more, with the framework set to be phased in over five years.
Melissa Enoch
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