White House considers slashing China tariffs by over 50%: WSJ
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The news: The Wall Street Journal reports that the Trump Administration is considering cutting its tariffs on Chinese goods imported to the US by over 50%, in efforts to diffuse trade tensions with Beijing.
The numbers: Citing anonymous sources, the WSJ said that while Trump hasn’t made a final determination, the China tariffs are likely to come down to between roughly 50% and 65%.
Trump’s administration is also mulling a tiered approach akin to the one proposed by the House committee on China late last year. The tiered systems proposed 35% levies for items the US does not deem a threat to national security, and at least 100% for items considered to be strategic to America’s interest. The bill proposed phasing in those levies over five years.
The context: On Tuesday President Trump had said that he was willing to cut the 145% tariffs on Chinese goods, backing earlier remarks by US Treasury Secretary Scott Bessent that the tariff standoff with China is “unsustainable” and he expects the situation to de-escalate.
China responded to the news of potential tariff reductions on Wednesday, with Foreign Ministry spokesperson Guo Jiakun stating that “China’s attitude towards the tariff war launched by the U.S. is quite clear: We don’t want to fight, but we are not afraid of it. If we fight, we will fight to the end; if we talk, the door is wide open.”
The stark shift in tone between the two countries has been welcomed positively by investors, with stocks around the globe pushing higher on the news. All three major US indexes climbed in early trading on Wednesday: the S&P 500 rose nearly 3%, while the Nasdaq Composite added close to 4%.
The source: WSJ
