During a White House news conference, Donald Trump announced that tariffs on Chinese imports will “come down substantially, but it won’t be zero.” His comments followed Treasury Secretary Scott Bessent’s remarks on Tuesday, in which he expressed optimism that the trade war between the two largest economies will “de-escalate” and indicated that maintaining high tariffs is not sustainable.
China responded by imposing 125% tariffs on US products following Trump’s move to impose 145% import tariffs on the nation. Following concerns by investors over slower economic growth and rising inflationary pressures, Trump has levied tariffs on several other countries, sending the stock market into decline and US debt interest rates up.
Two individuals who were familiar with Bessent’s comments and insisted on anonymity to discuss them verified some details of the statements. Bessent remarked,
“I do say China is going to be a slog in terms of the negotiations.”
He added,
“Neither side believes that the current situation can be maintained.”
After Bessent’s comments were first reported by Bloomberg News, the S&P 500 stock index increased by 2.5 percent.
In remarks to reporters following Paul Atkins’ ceremonial inauguration as the Securities and Exchange Commission chair on Tuesday, Trump praised the rise in the stock market.
But, as Bessent had stated behind closed doors, Trump refrained from saying if he, too, believed that the situation with China was untenable. Trump stated, “We’re doing well with China.”
He assured not to be tough with Chinese President Xi Jinping, vowing to be “very nice” to China despite imposing significant tariffs. Trump asserted, “We’re going to coexist happily and hopefully collaborate.” The president mentioned that the eventual tariff rate with China will significantly reduce from the current 145%.
Trump added,
“It won’t be that high, not going to be that high.”
Although it has continuously criticized Trump’s tariffs, China’s leadership has not yet responded to the news. Trump’s comments trended on Weibo, a social media platform in China, under a number of hashtags, including “Trump admitted defeat.”
They were characterized as “emblematic of the MAGA agenda’s populist protectionism” and destabilizing international trade in an article published on Tuesday in China Daily, the state outlet in English. The tit-for-tat ended when Beijing claimed that its 125% duty on US imports had already stifled domestic market interest in US goods, following Trump’s consecutive tariff increases.
China was left out of Trump’s following 90-day halt to his extensive global tariffs. Among other countries, the Trump administration has held meetings with colleagues from South Korea, Japan, India, the European Union, Canada, and Mexico.
Even while Trump has stated that he is seeking other countries to lower their own import tariffs and remove any non-tariff barriers that the administration claims have hampered US exports, he has made no public signals that he intends to reduce his baseline 10% tariff. China cautioned other nations on Monday against entering into trade agreements with the US that would harm its interests.
China’s trade ministry issued a statement saying, “China firmly opposes any party reaching a deal at the expense of China’s interests.”
But according to reports in Korean media on Tuesday, Beijing is now exerting pressure on other nations to impose Chinese curbs on US sales. According to the Korea Economic Daily, some Korean businesses received letters from the Chinese government threatening “retributions” if they shipped any goods that contained Chinese key minerals to US military contractors.
“Everyone involved is eager to reach a trade deal,”
noted White House Press Secretary Karoline Leavitt, who also mentioned that the Trump administration has received 18 trade agreement proposals with other nations.
Trump’s demand that the Federal Reserve lower its benchmark interest rate and his threat to dismiss Fed chair Jerome Powell if he so chooses have further increased the financial markets’ apprehension over tariffs. Although he had previously implied that he might fire the Fed chair, Trump later stated that he wanted Powell to “be early” in decreasing rates and that he has no plans to do so.
