Trump Hints at Slashing China Tariffs 'Substantially' Amid Market Volatility

Trump made the comments when asked about Treasury Secretary Scott Bessent’s remarks earlier in the day that the high tariff rates between the United States and China have effectively embargoed trade between the economies. Bessent said at a private investment conference hosted by JP Morgan Chase that the trade war with China is unsustainable and he expects the battle to de-escalate in the very near future, a person familiar with the matter confirmed to CNN. Instead of a hard break or complete decoupling between the United States and China, Bessent told investors that the goal is to have a rebalancing of trade, the source told CNN. That assessment gave a boost to a Wall Street rally that had taken shape earlier on Tuesday, with all three major US stock indexes hitting their highest levels of the day after Bessent’s remarks were made public.

President Donald Trump says his tariffs on Chinese goods will “come down substantially, but it won’t be zero.” “145 percent is very high, and it won’t be that high,” Trump said Tuesday during Oval Office event, according to CNN. "It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.” The statement from Trump potentially signals a shift in the ongoing trade war with China. Earlier this month, Trump announced a slew of tariffs on multiple countries but put a 90-day pause on them due to many reaching out for negotiations. However, the U.S. kept tariffs on China.

President Donald Trump said on Tuesday that the hefty tax rate of 145% Americans must currently pay for Chinese imports will likely be reduced significantly. While Trump said the rate "won’t be zero," he expressed optimism over a potential trade deal with Chinese President Xi Jinping. "One hundred forty-five percent is very high, and it won’t be that high," Trump said to reporters in the Oval Office. "It will come down substantially, but it won’t be zero." White House spokesman Kush Desai said to FOX Business in a statement that the U.S. is not looking to lower tariffs unilaterally and that China still must negotiate.