WASHINGTON: US President Donald Trump announced on Tuesday that tariffs on Chinese imports will be reduced “substantially” from their current 145% level but emphasized that they will not be removed entirely, signaling a shift in tone amid rising pressure over the prolonged trade standoff.
The statement came during a White House press conference, following earlier remarks by US Treasury Secretary Scott Bessent, who described the current tariff regime as “unsustainable” and anticipated a “de-escalation” in tensions between the world’s two largest economies.
While Bessent conveyed a sense of urgency for policy changes, Trump took a more cautious approach. “We’re doing fine with China,” he said. “The tariffs won’t be that high — not going to be that high.” Currently, the US imposes a 145% tariff on Chinese imports, with Beijing responding with 125% duties on American goods.
These retaliatory measures have disrupted global trade flows, rattled financial markets, and contributed to rising interest rates amid investor concerns over long-term economic fallout.
Despite the economic strain, Trump expressed hope for continued cooperation with China, stating, “We’re going to live together very happily and ideally work together,” in reference to Chinese President Xi Jinping.
President Xi, however, warned that worsening trade relations could jeopardize the global order. While China has yet to issue an official response, state-run media outlets, including China Daily, criticized Trump’s stance, labeling it “populist protectionism.” On Chinese social media platform Weibo, Trump’s remarks trended under hashtags such as “Trump admitted defeat.”
In parallel, Beijing has been cautioning countries against aligning too closely with Washington, with The Korea Economic Daily reporting pressure on South Korean firms to avoid involvement with US defense contractors.
The Trump administration continues to engage with other trade partners—including Japan, India, and the European Union—seeking reciprocal tariff reductions and the dismantling of non-tariff trade barriers.
Meanwhile, Trump reiterated calls for the Federal Reserve to cut interest rates, urging Fed Chair Jerome Powell to act preemptively. Though he denied any plans to remove Powell, Trump acknowledged past criticisms but signaled a softer stance moving forward.
