White House considers tariff cuts to ease China trade row
The White House is contemplating a considerable reduction in tariffs on Chinese imports to ease the trade dispute with China, "The Wall Street Journal" reported on Wednesday. According to the newspaper's sources, the tariffs might decrease from 145% to 50-65%.
"WSJ" reported that a final decision has not yet been made and discussions on this topic are continuing in the White House. The reduction of tariffs – which are currently so high that they virtually constitute an embargo on many Chinese products – aims to de-escalate trade tensions with Beijing, initiated by the imposition of additional reciprocal tariffs by the US, which raised the total rate to 145%.
According to one of the newspaper's sources, eventually, tariffs on Chinese goods might fall to 50-65%. The American administration is also considering different rates for various categories of goods: 35% for non-essential national security goods and 100% for products from strategic sectors of the economy.
Trump talks about tariffs
The tariff reduction was suggested on Tuesday by US President Donald Trump. When asked about comments from Treasury Secretary Scott Bessent, who reportedly stated at a closed conference organized by JP Morgan that the current tariff level is unsustainable, Trump agreed with his assessment.
"145% is very high and it won’t be that high. It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero," Trump said.
He also mentioned that he intends to be "nice" to China and that he will not "play hardball" with them. On Tuesday, following Bessent's and Trump's comments, stock prices on Wall Street rebounded sharply after recent declines and continued to rise on Wednesday. According to "WSJ," Trump's actions are a response to these declines, aimed at calming the worsening sentiment among investors.
"In China and the US, these are no longer tariff 'dances' like in previous years. It's a total trade war. Resolutions will only come when societies feel the pain, unemployment," wrote Jakub Jakobowski, Director of the Center for Eastern Studies, on the X platform in early April.
In a communiqué issued on April 11, Chinese authorities stated that if the United States continues its tariff-related tactics, China will disregard them. However, they warned that should the American side persist in making significant violations of Chinese interests, China will strongly oppose such actions and is prepared to fight to the end.
