The Trump administration is considering significantly reducing tariffs imposed on imports from China in an effort to ease tensions with Beijing that have shaken global trade and investment, according to the Wall Street Journal.
Specifically, according to the publication, a senior White House official said that tariffs on China could fall by between 50% and 65%. The administration is also considering a gradual approach, similar to what was proposed last year by the House of Representatives Committee on China: a 35% tariff on products that the US does not consider a threat to national security and at least 100% on products considered of strategic importance to American interests, according to several sources of the WSJ.
The draft law provides for the gradual implementation of these tariffs within five years.
President Trump has not yet made a final decision, according to the same sources, adding that discussions are ongoing and several options are being considered.
Trump said Tuesday he was willing to cut tariffs on Chinese goods, saying the 145% tariffs he imposed during his second term would be reduced. “But it won’t be zero,” he stressed. The development was met with relief by investors, who had been worried by the White House’s aggressive moves in recent weeks.
China signaled on Wednesday that it is open to trade talks with the United States, even as Beijing warned it would not negotiate under continued threats from the White House. In Chinese policymaking circles, Trump's remarks on Tuesday were interpreted as a sign of withdrawal, according to people familiar with the matter.
The statements from both sides indicate a change in tone compared to recent weeks, during which the world's two largest economies exchanged retaliatory measures and harsh statements, causing major turmoil in international financial markets, which experienced their worst weeks in recent years.
The US government had planned to use the upcoming tariff negotiations as a means of pressuring its trading partners to limit their relations with China, the Wall Street Journal previously reported.
However, Treasury Secretary Scott Bessent has said there is room for talks on a possible trade deal between the US and China. Those talks would involve Trump and Chinese President Xi Jinping, although the two have not spoken since Trump was re-elected to the White House.