Trump May Substantially Reduce China Tariffs in Potential Trade Deal Shift – Beijing Reacts

In a surprising turn of events, US President Donald Trump has hinted at significantly reducing tariffs on Chinese goods, signaling a possible softening of his aggressive trade stance against China.

Speaking to reporters from the Oval Office, Trump acknowledged that the current tariff rate of 145% on many Chinese imports is “very high” and stated that if a deal is reached, the rate “won’t be anywhere near that high”. He added, “It will come down substantially, but it won’t be zero.”

📌 This is a significant change in tone, especially after months of rising tensions, tit-for-tat tariff hikes, and increased market uncertainty due to the ongoing US-China trade war.

The White House now seems to be considering a rebalancing strategy rather than a full economic decoupling from China. Treasury Secretary Scott Bessent emphasized that the current trade standoff is unsustainable and that the goal is to reach a trade agreement that allows for fairer competition, particularly in manufacturing.

However, officials also cautioned that negotiations haven’t officially begun, and a comprehensive trade deal could take two to three years to materialize. According to Bessent, any final agreement must also address structural issues in China’s economy, particularly its emphasis on manufacturing over consumer spending.

Trump further assured, “We’re going to be very nice to China in any trade talks,” suggesting a friendlier approach moving forward, possibly influenced by global market reactions and investor concerns.

👉 This shift could bring some relief to global markets, which have been rattled by fears of prolonged trade tensions between the two largest economies in the world.

For now, all eyes remain on how China responds and whether both sides can come together to strike a balanced and mutually beneficial agreement.