Former U.S. President Donald Trump has announced that tariffs on Chinese imports, currently at a steep 145%, will be reduced “substantially”—though not eliminated entirely. Speaking at a White House press event, Trump emphasized that while negotiations with Beijing continue to be challenging, he remains optimistic about the outcome. “We’re doing fine with China,” he said, while also pledging to maintain a diplomatic tone with President Xi Jinping.
The announcement followed earlier comments from Treasury Secretary Scott Bessent, who privately stated that current tariffs were unsustainable and hinted at an upcoming “de-escalation” in trade tensions between the world’s two largest economies. Markets reacted swiftly, with the S&P 500 climbing 2.5% after the news broke.
Despite the easing rhetoric, Trump made it clear that some level of protectionism will remain. “It won’t be zero,” he said of future tariff rates, reaffirming the administration’s push for fairer trade conditions. He also stressed that other nations, including allies such as Japan, India, and members of the European Union, are being approached for broader trade reforms.
China, which has countered U.S. tariffs with 125% duties on American goods, has not formally responded, though Chinese state media and social platforms have criticized Trump’s stance as damaging to global trade. Reports from Korean media suggest that China is now pressuring third-party countries to limit cooperation with U.S. firms—particularly those involving military contractors and critical minerals.
Amid rising global tensions, Trump also renewed his pressure on the Federal Reserve, urging it to lower interest rates. Although he denied plans to fire Fed Chair Jerome Powell, he called for aggressive monetary easing, adding to investor uncertainty.
As trade talks evolve, the Trump administration says it has received 18 proposals from nations interested in striking new trade deals with the U.S. White House Press Secretary Karoline Leavitt noted, “Everyone involved wants to see a trade deal happen.”
