President Donald Trump announced on Tuesday that the current 145% tariff on Chinese imports is likely to decrease in the future. This statement came during a press conference at the White House, where he acknowledged that such a high tariff is excessive. Trump mentioned, “It won’t be anywhere near that high,” but he did not specify when the rate might drop or if it would depend on China agreeing to a deal.
Trump’s comments followed remarks by Treasury Secretary Scott Bessent, who warned that a prolonged trade war with China is not sustainable. Bessent expressed hope that tensions between the two countries would ease in the coming months as they work toward a resolution. He advised patience, suggesting that a comprehensive agreement could take two to three years to finalize.
The steep 145% tariff was established after a series of retaliatory actions between the U.S. and China, including a 20% tariff imposed by Trump in February over China’s involvement in fentanyl trafficking. In response, China has placed a 125% tariff on U.S. goods.
Following Bessent’s comments, stock markets and the U.S. dollar saw a rise. When asked about Bessent’s views, Trump acknowledged the positive market reaction but did not directly agree that the trade war is unsustainable. He added, “We’re going to be very nice,” suggesting that both sides need to work toward a deal for future dealings in the U.S. market.
White House Press Secretary Karoline Leavitt reported that 18 countries have submitted trade proposals to the Trump administration after his recent tariffs affected many nations. This week, Trump’s trade team, which includes Bessent and Commerce Secretary Howard Lutnick, is meeting with representatives from 34 different countries.
On a related note, China has warned that it would retaliate against countries that enter into trade agreements with the Trump administration, accusing the U.S. of abusing tariffs under the guise of reciprocity.