During a recent White House news conference, President Donald Trump stated that the high tariffs imposed on goods imported from China will “come down substantially, but it won’t be zero.” This announcement came in response to comments made earlier by Treasury Secretary Scott Bessent, who characterized the current high tariffs as “unsustainable” and anticipated a “de-escalation” in the ongoing trade war between the United States and China, the two largest economies in the world.
Currently, Trump has enacted a staggering 145% import tax on Chinese goods, which has prompted China to retaliate with 125% tariffs on American products. The imposition of these tariffs on various nations has led to fluctuations in the stock market, with rising concerns over slower economic growth and escalating inflationary pressures resulting in increased interest rates on US debt.
Details regarding Bessent’s remarks were corroborated by two anonymous sources familiar with the discussion. In a transcript obtained by the Associated Press, Bessent expressed, “I do say China is going to be a slog in terms of the negotiations. Neither side thinks the status quo is sustainable.” Following these comments, the S&P 500 stock index witnessed a notable increase of 2.5%, a reaction to the initial report by Bloomberg News.
After the ceremonial swearing-in of Paul Atkins as the chair of the Securities and Exchange Commission, Trump acknowledged the stock market's positive response, yet refrained from aligning his views with Bessent’s assessment of the situation with China. “We’re doing fine with China,” Trump commented. Despite maintaining high tariffs, he expressed a desire to adopt a “very nice” approach towards Chinese President Xi Jinping, stating, “We’re going to live together very happily and ideally work together.”
Trump reiterated that the final tariff rate with China would decrease significantly from the current 145%, emphasizing, “It won’t be that high, not going to be that high.”
The Trump administration has engaged in discussions with a variety of countries, including Japan, India, South Korea, the European Union, Canada, and Mexico. However, Trump has not indicated any plans to reduce his baseline 10% tariff, despite his calls for other nations to lower their import taxes and eliminate non-tariff barriers that he claims are impeding US exports.
In a statement released on Monday, China’s commerce ministry cautioned other nations against entering into trade agreements with the United States that could adversely affect China, asserting, “China firmly opposes any party reaching a deal at the expense of China’s interests.”
White House Press Secretary Karoline Leavitt revealed that the Trump administration has received 18 proposals from various countries regarding trade deals with the US, highlighting that “everyone involved wants to see a trade deal happen.”
The unpredictability surrounding tariffs has been further heightened by Trump’s call for the Federal Reserve to lower its benchmark interest rate. Trump remarked that he could dismiss Fed Chair Jerome Powell if he chose to do so, adding another layer of uncertainty in the financial markets.
