The Trump administration is considering lowering tariffs on imported Chinese goods as part of ongoing negotiations with Beijing, according to a source familiar with the matter, who emphasized that any decision would be made in coordination with talks and not unilaterally.
This development follows a report from the Wall Street Journal, which cited sources familiar with the situation, stating that the White House is contemplating a reduction in tariffs on Chinese imports to ease tensions with China. The report mentioned that tariffs could be reduced to between 50 percent and 65 percent, citing a White House official. Since returning to the White House in January, President Donald Trump has raised tariffs on Chinese imports to 145 percent.
However, the Journal noted that no decision has been made yet, with discussions still fluid and various options being considered. The White House did not immediately respond to a request for comment.
Following the report, U.S. stocks extended their early gains, with investors reacting positively to Trump’s recent comments about tariffs on China, as well as his decision to back away from threats to dismiss the head of the Federal Reserve. The S&P 500 index rose 3.3 percent to reach a two-week high in mid-morning trading.
On Tuesday, Trump expressed optimism about reaching an agreement with China that would result in significantly lower tariffs but warned that if a deal is not reached, the U.S. would “set the deal.” He indicated that any agreement would lead to “substantially” lower tariffs on Chinese goods, adding, “It won’t be that high. It won’t be anywhere near that.”
The Journal also reported that the administration is considering a tiered approach, similar to a proposal from the House of Representatives’ China committee last year. This approach would impose 35 percent tariffs on items deemed not a threat to national security and at least 100 percent on items considered strategic to U.S. interests. The proposal suggested phasing in these levies over five years.
