Trump Signals Tariff Reduction on Chinese Goods Amid Global Trade Tensions

 Washington, D.C., April 23, 2025 — President Donald Trump has indicated that the steep tariffs imposed on Chinese imports are likely to be reduced, though not eliminated entirely, as part of ongoing trade negotiations with Beijing. Speaking at a White House press conference on Tuesday, Trump stated, “The final tariff rate will come down substantially, but it won’t be zero.”

The president’s comments followed earlier remarks from Treasury Secretary Scott Bessent, who described the current tariff regime as “unsustainable,” hinting at an eventual de-escalation in the long-standing trade conflict between the United States and China. Bessent’s remarks, delivered in a closed-door session and later confirmed by two individuals familiar with the discussion, were widely interpreted as a softening of Washington’s stance.

“We’re doing fine with China,” Trump told reporters after attending the ceremonial swearing-in of Paul Atkins as Chairman of the Securities and Exchange Commission. While acknowledging that the existing tariff level—set at 145% on Chinese imports—was likely to be reduced, the president stopped short of endorsing Bessent’s assessment that the current arrangement cannot endure. China has responded with 125% tariffs on U.S. goods in a retaliatory move that has strained bilateral relations and rattled global markets.

Despite the escalating rhetoric, Trump reiterated his willingness to maintain a cooperative tone with Chinese President Xi Jinping. “We’re going to live together very happily and ideally work together,” he said. Trump also noted the recent surge in the S&P 500 index, which rose 2.5% following initial reports of Bessent’s remarks by Bloomberg News.

Meanwhile, China's official response to the developments remains reserved. State media, however, offered a critical interpretation. An editorial in the China Daily described Trump’s tariff regime as a product of “populist protectionism emblematic of the MAGA agenda,” accusing Washington of destabilizing the global trading system. On Chinese social media platform Weibo, hashtags such as “Trump admitted defeat” began trending shortly after the news conference.

China has thus far resisted further tariff escalation, stating that its countermeasures have already significantly curbed domestic demand for American imports. Beijing’s current tariffs remain in place, with officials signaling that no additional action is planned unless provoked. South Korean media reports on Tuesday claimed that Chinese authorities have begun pressuring companies in third-party countries to restrict the flow of certain goods to U.S. defense contractors, particularly those containing Chinese critical minerals.

In parallel, the Trump administration has been actively pursuing new trade arrangements with a range of nations including Japan, India, South Korea, Canada, Mexico, and the European Union. According to White House Press Secretary Karoline Leavitt, the U.S. has received 18 trade proposals from foreign governments, a sign of growing interest in bilateral agreements despite the tense global environment.

However, concerns over economic uncertainty continue to persist. Trump has urged the Federal Reserve to lower interest rates amid fears of slowing growth and inflationary pressures linked to ongoing trade disputes. The president raised eyebrows by suggesting he could dismiss Federal Reserve Chair Jerome Powell—a claim he later walked back, clarifying he had no immediate plans to do so but urging the Fed to act swiftly.

In a statement, China’s Ministry of Commerce cautioned nations against aligning with U.S. trade interests to the detriment of Chinese priorities. “China firmly opposes any party reaching a deal at the expense of China’s interests,” it said.

As global markets watch closely, the trajectory of U.S.-China trade relations remains uncertain. While Trump has expressed a desire for cooperation, his administration's assertive trade policies continue to send mixed signals to international investors and policymakers alike.