President Donald Trump indicated this week that tariffs on Chinese goods could decrease significantly, even as his administration enforces sweeping duties under a newly declared national emergency on trade. The shift comes amid internal concerns that the current tariff levels are unsustainable and that financial markets are seeking signs of de-escalation in the ongoing trade dispute.
What are current US-China tariff levels?
The U.S. currently imposes a 145% tariff on Chinese imports. China has responded with retaliatory duties of 125% on American products.
The administration has argued that the U.S. trade deficit, which reached $1.2 trillion in 2024, reflects deep structural imbalances, such as uneven tariff rates and widespread non-tariff barriers, that threaten U.S. manufacturing, national security and economic resilience.
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What has Trump and Bessent said about easing tariffs?
During a White House press conference on Tuesday, April 22, Trump said the 145% tariff on China “won’t be that high” and would come down “substantially.” However, he insisted it would not return to zero, according to the Guardian.
Treasury Secretary Scott Bessent told investors privately that the current tariffs are not sustainable and predicted a “de-escalation” soon. Still, formal trade negotiations with China have yet to begin.
The Associated Press reported that Trump intends to maintain the global 10% tariff baseline while seeking reciprocal concessions from countries with higher barriers to U.S. exports. He added that talks would be “very nice.”
What is the rationale behind Trump’s reciprocal tariff policy?
Trump’s April 2 executive order framed the U.S. trade deficit as a national emergency. He cited disparities in tariff rates and restrictive non-tariff practices — such as foreign subsidies, licensing obstacles and discriminatory regulations — as evidence of unfair treatment.
The order also pointed to trading partners such as China, India and the EU, where U.S. exporters face higher tariffs on goods like vehicles, rice and electronics.
The administration said these asymmetries weaken U.S. manufacturing, erode the defense-industrial base and harm economic resilience. The new policy imposes additional duties unless trading partners align with U.S. standards.
How has the global trade community responded?
White House press secretary Karoline Leavitt said the administration has received 18 proposals for bilateral agreements and scheduled 34 additional meetings with foreign officials this week. The administration also contacted counterparts in Japan, India, South Korea, the EU, Canada and Mexico.
Meanwhile, China’s government warned countries not to make trade deals with the U.S. that undermine Chinese interests. Reports from South Korea indicated that Chinese authorities pressured local firms not to export goods to U.S. military contractors if the products contain Chinese materials.
What impact have tariffs had on markets and interest rates?
The S&P 500 rose 2.5% after news broke of Bessent’s comments suggesting a tariff reduction, according to Investopedia. Investors previously expressed concern that rising tariffs could slow economic growth and push up interest rates on U.S. debt.
