It looks like things might be shifting in the long-running trade battle between the US and China. Former President Donald Trump has now said that the massive tariffs on Chinese imports may not stick around for long.
Speaking to reporters from the Oval Office, Trump admitted the current 145 percent tariff rate is way too high and won’t stay that way. He made it clear that although tariffs won’t go back to zero like before, they’ll definitely be brought down “substantially”.
In his words, “145 percent is very high, and it won’t be that high. It’ll come down substantially. But it won’t be zero – used to be zero. We were just destroyed. China was taking us for a ride.”
He went on to say that both sides – the US and China – will need to play fair and, eventually, make a deal. “They have to make a deal,” he added. “Otherwise they won’t be able to deal in the United States.”
This softer tone comes after a closed-door warning from US Treasury Secretary Scott Bessent. Speaking at a JP Morgan Chase investor forum in Washington, Bessent reportedly said the current situation with China just isn’t sustainable. “No one thinks the current status quo is sustainable,” he told investors.
Right now, Chinese goods coming into the US face a combined tariff load of 145 percent. China, in return, has slapped US exports with tariffs of up to 125 percent. Interestingly, items like smartphones and semiconductors haven’t been touched, and there’s also a 20 percent flat tariff still in place due to concerns around fentanyl.
Despite all this tension, there’s been no formal sit-down between Washington and Beijing. But the US isn’t standing still. White House Press Secretary Karoline Leavitt mentioned that more than 100 countries have shown interest in new trade talks since Trump’s wider global tariff move. China, though, hasn’t joined that list yet.
Even with no deal on the table, Leavitt said the White House is preparing for talks with China down the line and believes the US is doing quite well on the trade front overall.
Markets reacted quickly. After Bessent’s comments, US stock indexes jumped over 2 percent, suggesting that investors are hopeful. They’re betting that tensions might ease and a deal could eventually come together.
