Trump Signals Possible Easing of US-China Trade Tensions, Hints at Substantial Tariff Cuts

At a recent White House press conference, former President Donald Trump hinted the historic tariffs placed on Chinese imports today will be drastically reduced in the future, though not to zero. "They will come way down, but it won't be zero," he told them.

Trump made the comments following Treasury Secretary Scott Bessent's earlier remarks during the day that the present tensions in trade between China and America could start easing off in the near future. The present tariff rates are not sustainable and there is a "de-escalation" already in the making in the economic battle between the two world powers, Bessent stated.

In Trump's government, a tariff of 145% was put on Chinese imports. China retaliated with 125% tariffs on American exports. These were applied to various other nations too, which led to financial market instability and higher interest rates on U.S. debt. Economists and investors have been worried about the prospect of slower economic growth and inflationary pressures.

Sources of Bessent's remarks, who spoke on condition that they not be named, confirmed his conservative outlook. "I do say China is going to be a slog in terms of the negotiations," Bessent said in an Associated Press record. "Neither side thinks the status quo is sustainable."

Following Bessent's quoted remarks, the S&P 500 increased 2.5%, according to initial reporting by Bloomberg News.

Later that day, Trump acknowledged the stock market's rise while addressing the media after the formal swearing-in ceremony of Paul Atkins as the new chair of the Securities and Exchange Commission.

However, Trump refrained from echoing Bessent’s assessment of the trade deadlock with Beijing, instead offering a more optimistic view. “We’re doing fine with China,” he remarked.

Though his preceding president, while in power, had maximum tariffs, the latter claimed diplomatic language when negotiating further deals with Chinese President Xi Jinping. Trump promised to be "very nice" to China and did not give any suggestion of aggressive means.

We are going to be living together very happily and hopefully working together," Trump said, repeating that the current 145% tariff rate would come down significantly. "It won't be that high, it's not going to be that high," he vowed.

Though no official response from Beijing was available at the time, U.S. criticism of tariffs has continued uninterrupted. Trump's most recent comments became a Weibo trend, with trending hashtags such as "Trump admitted defeat" being popular among Chinese netizens.