The Trump administration is reportedly considering reducing tariffs on Chinese imports as part of efforts to ease trade tensions with Beijing. A source familiar with the matter said Wednesday that any potential cuts would depend on ongoing negotiations and would not be implemented unilaterally.
This comes after a Wall Street Journal report revealed that the White House is exploring a possible reduction of its current 145% tariffs on Chinese goods, potentially lowering them to between 50% and 65%. The move is aimed at de-escalating the prolonged trade dispute between the two global economic powers.
Though no final decision has been made, discussions remain fluid, with several options under consideration. The White House has not issued an official statement regarding the reports.
Financial markets responded positively to the news. The S&P 500 index rose by 3.3% by mid-morning Wednesday, reaching a two-week high. Market optimism had already been rising following President Trump’s remarks on Tuesday, which suggested a softer approach on tariffs. Trump also confirmed he would not replace the Federal Reserve chair, further boosting investor confidence.
Speaking to reporters, Trump expressed optimism about reaching a favorable trade agreement with China. “It won’t be that high,” he said about current tariff levels, adding, “It won’t be anywhere near that.” However, he maintained a tough stance, warning, “If they don’t make a deal, we’ll set the deal.”
In addition, the administration is reportedly reviewing a tiered tariff system similar to a proposal from a House committee on China. That framework would impose a 35% tariff on non-sensitive goods and up to 100% or more on strategic or national security-related imports. The system would be phased in over five years.
Edited by Nzubechukwu Eze.
