US President Donald Trump has confirmed that tariffs on Chinese imports will be reduced “substantially” from the current 145% level, but insisted they will not be removed entirely, as he addressed growing questions over the future of the US-China trade standoff.
Trump’s remarks, made at a White House news conference on Tuesday, followed comments from US Treasury Secretary Scott Bessent earlier in the day, who called the high tariff levels “unsustainable” and predicted a “de-escalation” in trade tensions between the two largest global economies.
While Bessent suggested that both sides recognised the need for a shift in policy, Trump appeared to take a more cautious tone, stating, “We’re doing fine with China,” and adding that the tariffs “won’t be that high, not going to be that high.”
The US currently imposes a 145% tariff on Chinese goods, with China responding with 125% duties on US imports.
These measures have strained global trade, rattled markets, and led to higher interest rates as investors weigh the economic impact.
Despite the economic consequences, Trump maintained that the relationship with Beijing could remain cooperative. “We’re going to live together very happily and ideally work together,” he said, referring to Chinese President Xi Jinping.
Xi, in response, issued a warning that escalating trade tensions might lead to ‘global order’ being hurt.
The president avoided directly supporting Bessent’s claim that the current situation was “unsustainable,” a comment made behind closed doors and confirmed by sources familiar with the conversation.
Nonetheless, Trump acknowledged a 2.5% stock market rise, reportedly triggered by optimism around potential tariff cuts.
China has not officially responded, but Chinese media, including the English-language China Daily, criticised Trump’s approach, calling it “populist protectionism.”
On Chinese social platform Weibo, Trump’s comments trended under hashtags such as “Trump admitted defeat.”
Beijing has continued warning countries against aligning too closely with Washington, with reports from The Korea Economic Daily indicating China is pressuring Korean firms to avoid supplying US military contractors.
The Trump administration has been engaging with numerous trade partners including Japan, India, and the European Union, as the White House presses for reciprocal tariff reductions and removal of non-tariff barriers.
Meanwhile, Trump has also called on the Federal Reserve to cut interest rates, stating he wants chair Jerome Powell to “be early” with policy easing. He denied intentions to remove Powell, despite previously suggesting it.
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