US President Donald Trump announced that the hefty 145% tariffs on Chinese imports will be significantly lowered, though not eliminated, in what could mark a shift in the long-running trade standoff between the two global powerhouses. His comments, made during a White House press conference on Tuesday, followed earlier statements from Treasury Secretary Scott Bessent, who called the current tariff regime “unsustainable.”
While Bessent predicted a likely de-escalation in tensions, Trump struck a more reserved tone. He reassured reporters that the US-China relationship remains intact, stating, “We’re doing fine with China,” and promising the tariff levels “won’t be that high.” However, he refrained from endorsing Bessent’s assertion that the current strategy needed a full overhaul.
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The high tariffs have rattled markets and strained global supply chains, contributing to inflation and rising interest rates. Still, Trump maintained that a cooperative relationship with China was possible and even desirable. His remarks came as Chinese President Xi Jinping warned of the damage that prolonged trade disputes could do to the global order.
In the wake of Trump’s remarks, markets reacted positively, with the stock market climbing 2.5% on hopes of easing trade friction. Meanwhile, Beijing has yet to issue an official response, though state media voiced criticism, labeling the US approach as “populist protectionism.” On Chinese social platforms, Trump’s comments quickly went viral, interpreted by some as a sign of retreat.
