The Donald Trump administration is reportedly weighing a proposal to cut tariffs on Chinese imports to between 50 per cent and 65 per cent, in an effort to ease tensions with Beijing, news agency Reuters reported on Wednesday citing sources.
The move would be part of ongoing negotiations and not a unilateral decision, the report added, following a Wall Street Journal report suggesting the White House is actively discussing tariff reductions as part of broader talks with China.
The Journal cited a White House official saying President Trump, who has raised tariffs on Chinese goods to as high as 245 per cent since his return to office in January, has yet to make a final decision. However, several options remain on the table, including a tiered system with lower rates on non-sensitive items and high duties—over 100 per cent—on goods considered strategic to US interests.
Markets responded positively to the developments. The S&P 500 surged 3.3 per cent to a two-week high mid-morning Wednesday, buoyed by hopes of tariff relief and Trump’s conciliatory tone in remarks made late Tuesday.
“It won’t be that high,” Trump said, when asked about current tariff levels. “It won’t be anywhere near that.” He added that a deal could bring “substantially” lower tariffs, but warned, “If they don’t make a deal, we’ll set the deal.”
The White House has not officially commented on the reports.
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