In a significant move to de-escalate the ongoing trade war with China, the White House is reportedly exploring a reduction of tariffs on Chinese goods to as low as 50-55%, according to a recent report by the Wall Street Journal. This potential policy shift could reshape U.S.-China economic relations and have far-reaching implications for global trade.
The proposed tariff cuts aim to reduce tensions between the world’s two largest economies, which have been locked in a trade dispute for years.
U.S. President Donald Trump hinted at a softer approach during remarks in Washington on Tuesday. “It will come down substantially but it won’t be zero,” Trump stated, signaling a possible departure from his traditionally hardline trade stance. “We’re going to be very nice and they’re going to be very nice, and we’ll see what happens,” he added, suggesting optimism for a potential trade deal with China.
The comment follows remarks from Treasury Secretary Scott Bessent, who acknowledged that the prolonged tariff standoff was “unsustainable” and hurting both sides. Markets have reacted nervously to prolonged uncertainty, and the administration appears to be recalibrating its strategy amid growing concerns about economic stability and investor confidence.
