Trump signals tariff cut for China soon: Here's why he's backing off
US President Donald Trump is open to lowering tariffs on China, acknowledging their current levels hinder trade. His administration has imposed 145% tariffs on China.
US President Donald Trump said he is open to reducing tariffs on China eventually, acknowledging that current rates are so steep they have effectively halted trade between the world’s two largest economies.
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Under his administration, tariffs on Chinese imports have reached as high as 145 per cent, prompting China to retaliate with tariffs of up to 125 per cent on American goods. The escalating trade tensions have unsettled financial markets and risk increasing prices on essential items like manufacturing equipment, clothing, and toys that many Americans depend on, Bloomberg reported.
“At some point, I’m going to lower them, because otherwise, you could never do business with them, and they want to do business very much,” Trump said in an interview taped Friday and aired Sunday on NBC’s ‘Meet the Press’ with Kristen Welker.
Trump also pointed to recent economic struggles in China, citing data from the official manufacturing purchasing managers’ index, which showed factory activity has fallen into its steepest contraction since 2023.
Bloomberg reported that new export orders have plummeted to their lowest levels since December 2022, with the sharpest drop since April of that year, when Shanghai was under a full pandemic lockdown.
Trump also praised some statements that China made recently as “positive”, while reiterating that any deal between the two countries would have to be “fair.”
Here's what China said
China said on Friday it was assessing the possibility of trade talks with the US since Trump’s tariffs were announced last month, the first sign that negotiations could begin between the two sides.
“China is currently evaluating this,” the ministry’s statement said. US stocks rose on Friday following those signals from Beijing.
On Sunday, Trump told reporters aboard Air Force One that he had no plans to speak with Chinese President Xi Jinping this week, saying the two sides are “talking about different things.”
He added that Washington is in trade discussions with several countries, including China, and emphasised he’s looking for a “fair deal,” repeating his claim that China had "been ripping us off for many years.”
(With inputs from agencies)
- The current tariffs on Chinese imports are stifling trade between the US and China.
- Economic struggles in China may influence the US's tariff strategy.
- Negotiations between the two nations could be on the horizon, with both sides seeking a fair deal.
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