US Considering Cutting Tariffs On Chinese Goods

According to reports from US media, the Trump administration is said to be considering significantly cutting tariffs on goods imported from China. This cut could potentially lower tariffs from current very high levels to around 50-65%, as Washington seeks to reduce tensions and promote trade negotiations with Beijing.

Reports in US newspapers covered the possibility of the US cutting tariffs on Chinese goods. According to an unnamed White House official cited, the tariff rate could drop from the current 145% to between 50% and 65%.

Comments from this source emerged after a report by the Wall Street Journal (WSJ) stating that the White House was considering reducing import tariffs from China with the aim of easing trade tensions between the world’s two largest economies.

Reactions From President Trump And US Officials

Amidst these speculations, President Donald Trump made notable remarks. On Wednesday (April 23), Mr. Trump told reporters: “We are going to have a fair deal with China,” although he did not directly address the details in the WSJ report. This comment followed optimistic remarks he made on Tuesday (April 22), suggesting that a US-China tariff reduction deal was entirely possible.

Regarding the media reports, White House spokesperson Kush Desai emphasized that any information about tariffs was merely “pure speculation,” unless it came directly from President Trump.

President Trump also confirmed on Wednesday that direct talks between the US and China were happening “daily” to resolve trade issues. When asked about direct contact, Mr. Trump replied: “Yes, of course, daily.”

Earlier, the US President also stated that members of his administration were in contact with Chinese government officials, but declined to reveal whether he had spoken directly with President Xi Jinping.

Also on April 23, US Treasury Secretary Scott Bessent expressed a more optimistic and softened stance regarding China during a speech at the Institute of International Finance in Washington D.C. Mr. Bessent remarked that China “knows that they need to change.”

“If China is serious about lessening its dependence on export-led manufacturing growth and rebalancing toward a domestic economy… let’s rebalance together,” Mr. Bessent stated. “This is an incredible opportunity.”

In a private meeting on Tuesday (April 22), Mr. Bessent also told investors that he expected the US-China trade war to “de-escalate” in the “very near future.”

Mr. Bessent added: “‘America First’ does not mean America alone. On the contrary, it is a call for deeper cooperation and mutual respect among trade partners.”

Global Stock Markets React Positively

News about the potential for tariff reduction and optimistic statements from US officials had a strong impact on financial markets. Global stock markets rallied after President Donald Trump announced that his tariffs on China would be reduced “substantially.”

Several weeks of tough rhetoric on trade from White House officials had previously made investors nervous, and Mr. Trump’s softened tone immediately created a positive effect. The President told reporters in Washington on Tuesday (April 23) that he intended to be “very nice” to China in trade negotiations.

Overnight in Asia, major stock indexes saw gains: Japan’s Nikkei index rose nearly 2%, Hong Kong’s Hang Seng index climbed 2.4%, and South Korea’s Kospi index increased by 1.6%.

The rally spread to Europe in early trading on Wednesday (April 23), with the UK’s FTSE 100 rising 1.6%, while Italy’s FTSE MIB gained 1.1%. Germany’s Dax jumped 2.6% and France’s Cac advanced 2.1%.

Meanwhile, US stocks opened sharply higher in the morning, with the Dow gaining over 800 points and the Nasdaq Composite climbing over 3%. The rally slowed down in the afternoon, but all major stock markets ended the day higher.

Response From China

While President Donald Trump and Treasury Secretary Scott Bessent appeared more optimistic about resolving the trade deal with China, Beijing also issued a clear response and demand.

Earlier, China called on the US to “stop threatening” if it truly wanted to seek a trade solution. A spokesperson for the Chinese government suggested that the US approach needed to change.

“Our door is always open, if the US wants to negotiate. If a negotiated solution is genuinely what the US wants, then they should stop threatening and blackmailing China and seek dialogue based on equality, respect, and mutual benefit,” Chinese Foreign Ministry spokesperson Quách Gia Khôn told reporters.

He added: “Continuing to demand a deal while exerting extreme pressure is not the right way to deal with China and will not be effective.”