US President Donald Trump announced a significant reduction in tariffs on Chinese imports but stopped short of eliminating them entirely, signaling a cautious de-escalation in the prolonged US-China trade war.
Speaking at a White House press conference on Tuesday, Trump confirmed that the current 145% duties on Chinese goods would be reduced “substantially,” though he emphasized they would not be completely scrapped. “We’re doing fine with China,” he stated, adding, “They won’t be that high, not going to be that high.”
Trump’s remarks followed earlier comments from US Treasury Secretary Scott Bessent, who described the sky-high tariffs as “unsustainable” and predicted a mutual “de-escalation” in trade tensions. While Bessent hinted at a broader policy shift, Trump’s more guarded stance suggests lingering reluctance to ease economic pressure on Beijing fully.
The trade war has taken a heavy toll:
- 145% US tariffs on Chinese goods vs. 125% Chinese retaliatory duties
- Disrupted supply chains and market volatility
- Higher interest rates as investors brace for prolonged economic friction
With Trump softening but not abandoning his hardline stance, analysts warn that partial reductions may not be enough to stabilize global markets. As negotiations continue, businesses and investors remain wary of false dawns in the world’s most consequential trade dispute.
Despite the economic fallout, Trump expressed optimism that U.S.-China relations could stay cooperative. “We’re going to live together very happily and ideally work together,” he said, referring to Chinese President Xi Jinping.
In response, Xi cautioned that rising trade tensions could harm the global order.
Trump stopped short of endorsing Bessent’s private remark that the situation was “unsustainable,” a comment confirmed by sources familiar with the discussion.
Still, he pointed to a 2.5% uptick in the stock market, which was reportedly fueled by hopes of upcoming tariff reductions.
China has yet to issue an official response, but state-run media, including the English-language China Daily, criticized Trump’s stance, labeling it “populist protectionism.”
On the Chinese social media platform Weibo, Trump’s remarks gained traction under trending hashtags such as “Trump Admitted Defeat.”
Beijing has continued to caution other nations against growing too close to the United States. According to The Korea Economic Daily, Chinese authorities have reportedly pressured South Korean companies to refrain from supplying U.S. military contractors.
In parallel, the Trump administration has been in talks with several trade partners, including Japan, India, and the European Union, pushing for mutual tariff cuts and the elimination of non-tariff trade barriers.
At home, Trump has urged the Federal Reserve to lower interest rates, saying he wants Chair Jerome Powell to “be early” with monetary easing. He also denied any plans to remove Powell, despite having previously hinted at the possibility.
