The trade war unleashed by Donald Trump on April 2, a day he dubbed as “Liberation Day,” does not seem to have had the desired effect by the President of the United States, and since then, in recent weeks, he has had to change course on the tariffs announced to his trading partners.
First, there was a 90-day pause in reciprocal import taxes to most countries around the world, and this Tuesday it took its most radical turn by mentioning a possible moderation of tariffs against China, the main goal of the Trump administration when starting this trade war.
During an appearance at the White House, the president acknowledged that tax rates against the Asian giant could be significantly reduced, although he ruled out eliminating them completely: “145% is very high and it won’t be that high,” Trump said. “It won’t be anywhere near that high. It will come down substantially. But it won’t be zero.”
How much would the tariff reduction against China be?
According to an article from The Wall Street Journal, the U.S. government is considering substantial cuts to tariffs on Chinese imports, some of which could be reduced by more than half.
Sources close to the administration confirmed that the proposal is still in the deliberation phase and a final resolution has not been reached.
A high-ranking official from the White House told the Wall Street Journal that tariffs on China will likely range between 50% and 65% after the review.
The spokesperson Kush Desai reiterated that any final decision will be made solely by the president: “President Trump has been clear: China needs to reach an agreement with the United States. When decisions on tariffs are made, they will come directly from the president. Anything else is pure speculation.”
On Wednesday, Treasury Secretary Scott Bessent clarified to the press that Trump has not offered a unilateral reduction in tariffs, as reported by Bloomberg News.
What was China’s reaction?
Although a possible reduction in tariffs could signal a relaxation, the effects would still be severe for Chinese manufacturers. Experts anticipate that even with a significant decrease, the entry of products such as electrical machinery or industrial equipment into the US market would be difficult, which could halt bilateral trade within months.
During a press conference, the spokesperson of the Chinese Ministry of Foreign Affairs, Guo Jiakun, stated that if the United States wishes to reach an understanding, they must abandon threats and treat China with equality and mutual respect. "Stating a desire to reach an agreement with China while constantly applying maximum pressure is not the correct way to engage with China," he pointed out.
Guo emphasized the Chinese government’s willingness to negotiate, but also underscored their firmness in the face of external pressure. “If it’s for fighting, we will fight to the end. If it’s for dialogue, our door is completely open.”
The shift in Trump’s discourse not only generated institutional reactions. In Chinese social networks, the hashtag “Trump chickened out” became one of the most discussed topics on the Weibo platform, with over 150 million views in a few hours.
As part of its strategy against Trump, Beijing has restricted the import of essential minerals, decreased Hollywood movies’ access to its theaters, and returned aircraft manufactured by Boeing, thus intensifying the geopolitical rivalry between the two countries.