Fox Business correspondent Charles Gasparino analyzed President Donald Trump’s temporary tariff reduction on China, announced during a recent U.S.-China trade truce. Gasparino explained that Trump raised tariffs globally, including proposed 145% tariffs on Chinese goods, but market backlash, especially in the bond market, forced a 90-day pause.
Gasparino highlighted that both sides blinked, with China reportedly reducing tariffs to 10% while Trump considered a reduced 30% duty instead of 145%.
He stated, “We have a weak negotiating hand,” warned markets “exert their power,” and noted dependence on the bond market to finance U.S. debt amid budget and trade deficits.
Gasparino concluded that Trump’s tariff retreat signals a tactical retreat with potential inflation risks if no deal emerges and underlines the dangers of prolonged trade conflicts.
