The Trump administration would look at lowering tariffs on imported Chinese goods pending talks with Beijing, a source familiar with the matter said on Wednesday, adding that any action would not be made unilaterally.
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The source’s comments followed a Wall Street Journal report that the White House is considering cutting its tariffs on Chinese imports in a bid to de-escalate tensions.
China tariffs could come down from their current level of 145% to between 50% and 65%, the paper said, citing a White House official.
“We are going to have a fair deal with China,” Trump told reporters on Wednesday, but did not address the specifics of the Journal report. His remarks followed optimistic comments he made on Tuesday that a deal to lower tariffs was possible.
White House spokesperson Kush Desai said any reports on tariffs were “pure speculation” unless they come directly from Trump.
The tariff levels outlined in the Journal report would likely still be high enough to deter a significant chunk of trade between the world’s two largest economies. German shipper Hapag-Lloyd said Wednesday that 30% of its U.S.-bound shipments from China have been cancelled.
China has retaliated with 125% tariffs on U.S. imports, along with other measures.
Treasury Secretary Scott Bessent said both countries see the current rates as unsustainable, but said he does not know when any negotiations might start.
Separate talks between the two countries over tackling the fentanyl epidemic have not yielded results so far, sources say.
U.S. stocks extended their early session gains after the report. The market had opened sharply higher on relief among investors after Trump backed away from threats to fire the head of the Federal Reserve and said a deal with China was possible. The benchmark S&P 500 index was up roughly 3% in mid-morning trading.
The Journal reported that discussions remain fluid and several options are on the table. One option would be a tiered approach similar to one proposed by the House of Representatives committee on China late last year: 35% levies for items the U.S. deems not a threat to national security, and at least 100% for items deemed as strategic to America’s interest, some of the people said. That bill proposed phasing in those levies over five years.
In addition to the steep tariffs on China, Trump has also imposed a blanket 10% tariff on all other U.S. imports and higher duties on steel, aluminum and autos. He has suspended targeted tariffs on dozens of other countries until July 9 and floated additional industry-specific levies on pharmaceuticals and semiconductors. That has roiled financial markets and raised fears of recession.
The International Monetary Fund said Wednesday the tariffs will slow growth and push debt higher across the globe.
