United States President, Donald Trump, has suggested a possible easing of the intense trade conflict with China, hinting that the steep tariffs imposed on Chinese imports may soon be scaled back.
Though the reduction won’t eliminate tariffs entirely, Trump indicated they could be lowered significantly from current levels.
Speaking at a White House press briefing on Tuesday, Trump appeared to take a step back from the aggressive stance that has defined much of the trade dispute, which has seen tariffs climb to more than 145%.
“145% is very high and it won’t be that high,” the president said in the Oval Office during a Q&A with reporters. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”
The remarks followed comments earlier in the day from Treasury Secretary Scott Bessent, who suggested that the current tariff levels have essentially halted trade between the US and China.
Bessent, speaking at a closed-door investment event organized by JP Morgan Chase, reportedly described the trade tensions as unsustainable and predicted a de-escalation could come soon, according to a source who spoke to CNN.
Rather than severing economic ties entirely, Bessent reportedly told investors the goal was to achieve a more balanced trading relationship with China.
News of the administration’s changing tone helped lift investor sentiment on Tuesday, with all three major US stock indices climbing to intraday highs after Bessent’s remarks were publicized.
That optimism spread to Asian markets by Wednesday, where Hong Kong’s Hang Seng Index led gains with a 2.5% jump. Japan’s Nikkei 225 advanced 2%, and South Korea’s Kospi rose 1.5%.
The ongoing trade war between the world’s top two economies has led to record-breaking tariffs on both sides, disrupting global trade flows and raising fears of a potential recession.
In response to US moves, China has hiked tariffs on American products to as high as 125%, restricted exports of vital minerals, and added US firms to its so-called “unreliable entity list.”
It has also imposed measures targeting key American industries, such as limiting Hollywood movie releases and sending two Boeing aircraft ordered by Chinese airlines back to the US.
Despite the economic strain, Trump reiterated his personal rapport with Chinese President Xi Jinping, claiming he remains open to dialogue, so long as China makes the first move.
“I have a very good relationship with Xi Jinping,” Trump noted, adding that he hoped Xi would initiate talks. “No,” he replied when asked whether the US would pressure China or bring up the COVID-19 pandemic during any negotiations.
“No, no, we’re going to be very nice. They’re going to be very nice, and we’ll see what happens,” he said. “But ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States, and we want them involved.”
“I think we’re going to live together very happily and ideally work together, so I think it’s going to work out very well,” Trump stated.
China has also left open the prospect of negotiations but maintains they must occur on equal footing.
A source close to Beijing’s policymaking circle told CNN that Chinese officials are amenable to discussions,provided there is mutual respect, predictability, and fairness in the approach.
According to the source, before Trump announced his controversial “Liberation Day” tariffs on April 2, China had identified a liaison for talks. However, it remained unclear who would represent the US side, as Trump seemed inclined to handle negotiations personally—a method that doesn’t align with China’s diplomatic protocols.
The source also highlighted Beijing’s unease over certain hostile statements from Trump administration officials, suggesting the president’s silence on these remarks implied approval despite his public affirmations of goodwill toward Xi.
Earlier this month, tensions flared further when Beijing condemned US Vice President JD Vance over disparaging remarks about “Chinese peasants” made during an interview, sparking widespread backlash on Chinese social media platforms.
