Hong Kong/Washington – In a move that could reshape the trajectory of U.S-China trade relations, President Donald Trump has indicated that the steep tariffs imposed on Chinese goods may be significantly reduced. Speaking at the White House on Tuesday, Trump acknowledged that while the current tariffs peaking at around 145%—are extremely high, they are not a long-term solution.
“It’s not going to stay that high,” Trump stated while speaking to reporters in the Oval Office. “It’ll come down substantially. But it won’t be zero.” The president’s statement marks a noteworthy change in tone after months of intensifying rhetoric and economic sparring between the two global powers.
A Potential Turning Point in the Trade War
Trump’s remarks come amid growing concerns about the impact of the tariff war on global markets, supply chains, and economic stability. For months, both the United States and China have been locked in a tit-for-tat battle, escalating tariffs on a wide range of imports from one another. These actions have triggered widespread uncertainty among investors and businesses, prompting calls for de-escalation from both sides of the Pacific.
Earlier that day, Treasury Secretary Scott Bessent reportedly suggested at a private investment conference that the trade war in its current form is not sustainable. He emphasized the need for a rebalancing of trade rather than continued economic isolation between the two nations. According to individuals familiar with the matter, Bessent’s comments were aimed at reassuring markets and investors that a resolution might be on the horizon.
Markets React Positively
Following Bessent’s remarks, U.S. financial markets experienced a noticeable uptick, with the three major stock indexes reaching their highest levels of the day. This surge in confidence appeared to reflect investor optimism about a potential easing of tensions. The ripple effect extended into Asian markets as well, with Hong Kong’s Hang Seng Index rising over 2%, Japan’s Nikkei 225 gaining approximately 2%, and South Korea’s Kospi closing up 1.5%.
China Responds Cautiously
On the other side, Chinese authorities were quick to respond. The Foreign Ministry in Beijing reiterated its long-standing position that pressure tactics will not work with China. “If the United States wants to make a deal, it should stop its threats and coercion,” said Guo Jiakun, a spokesperson for the ministry, during a routine press conference.
Guo made it clear that while China prefers to avoid confrontation, it is fully ready to safeguard its national interests. “We’re not looking for a fight, but we won’t shy away from one. If conflict comes, we’ll stand our ground. If it’s about dialogue, we’re always open to talk,” he stated.
Meanwhile, Chinese social media saw a spike in chatter regarding Trump’s comments. A trending hashtag, loosely translated as “Trump backed down,” gathered tens of millions of views on the platform Weibo, reflecting both skepticism and amusement among Chinese netizens.
Beijing’s Countermeasures Remain in Place
Despite Trump’s softer rhetoric, China has shown no signs of reversing its retaliatory steps. Beijing has increased tariffs on American goods to 125%, added U.S. firms to its unreliable entity list, and restricted exports of strategic materials used in critical technologies. The Chinese government has also targeted American cultural exports, such as Hollywood films, and sent back U.S.-made aircraft previously bound for Chinese airlines.
Trump Emphasizes Willingness for Dialogue
Amid the prolonged trade dispute, Trump has consistently pointed to a positive personal connection with China’s leader, Xi Jinping. On Tuesday, he expressed optimism about future discussions, saying he intends to approach negotiations with goodwill and expects the same spirit from the Chinese side.
However, Trump also made it clear that the onus is on China to initiate formal negotiations. “In the end, they’ll need to reach an agreement, or they’ll face challenges doing business in the American market,” he remarked, expressing confidence that the two nations can cooperate peacefully and productively.
A Complicated Path Forward
While Trump appears ready to dial back the confrontational stance, insiders familiar with China’s approach note that Beijing is still unclear about the U.S. chain of command when it comes to trade talks. One source said that China had previously appointed a contact point for negotiations, but Washington’s shifting messages and internal disagreements made dialogue difficult.
The source also pointed to contradictions between Trump’s conciliatory statements and the hawkish rhetoric from some of his Cabinet members, suggesting a disconnect that continues to muddy the diplomatic waters.
Recently, Beijing expressed strong disapproval of U.S. Vice President JD Vance’s remarks about Chinese citizens in a recent interview. The criticism highlights the fragile nature of the relationship between the two countries and the need for careful diplomacy to prevent further escalation.
Credit: South China Morning Post
Conclusion
As global markets continue to sway under the weight of uncertainty, Trump’s remarks offer a potential sign of de-escalation. However, whether these words translate into policy remains to be seen. For now, both sides appear poised between confrontation and cooperation—waiting to see who makes the next move.