The report suggests that cuts could reach 65%, with U.S. Treasury Secretary Scott Bescent saying escalation consultations are needed before trade negotiations continue.
President Donald Trump’s administration is pondering the reduction of US tariffs on Chinese goods in talks with Beijing, Reuters reported, citing an unknown source.
Reuters reported on Wednesday.
Sources commented, following a report from a Wall Street Journal (WSJ) newspaper, that the White House is considering cutting tariffs on Chinese imports to lift tensions. China’s tariffs could fall from 145% to 50% to 65% from current levels, citing White House officials.
“We intend to do fair deals with China,” Trump told reporters Wednesday, but said details about the WSJ report. His remarks followed optimistic comments he made on Tuesday that a transaction could be made to lower tariffs.
US Treasury Secretary Scott Bescent also declined to comment on the WSJ’s story, but said he would not be surprised if tariffs were lowered. Bessent said the two countries view the current rate as unsustainable, but they don’t know when negotiations will begin. Bessent added that de-escalation is necessary before trade talks progress.
“I think both sides are waiting for them to talk to others,” Bescent said.
Separate talks between the two countries over their efforts to address the fentanyl epidemic have so far not achieved results, sources said.
White House spokesman Kush Desai said the tariff report was “pure speculation” unless it comes directly from Trump.
Still expensive
The tariff levels outlined in the Wall Street Journal report will be high enough to thwart significant trade between the two largest economies of the world. German shipper Hapagroid said 30% of US-surrounded cargo from China had been cancelled on Wednesday.
China, along with other measures, retaliated with a 125% tariff on US imports.
US stocks extended profits for the early session after the report. The market has been opened sharply with relief among investors after Trump retreated from the threat of firing the head of the US Federal Reserve and said that dealings with China were possible. The Benchmark S&P 500 Index rose by around 3% in morning trading.
The WSJ reported that the discussion remains fluid and that some options are on the table. One option is a layered approach similar to that proposed by China’s House Committee on House of Representatives at the end of last year. At least 100% of items that the United States considers to be no threat to national security, and items considered strategic to US interests. The bill has been proposed in stages in stages with these taxes for over five years.
In addition to China’s sudden tariffs, Trump also wrapped up 10% tariffs in all other US imports and higher obligations on steel, aluminum and automobiles. He suspended target tariffs in dozens of other countries until July 9th, bringing more industry-specific collections to surface on drugs and semiconductors. It shook financial markets and raised fears about a global recession.
The International Monetary Fund (IMF) said Wednesday that tariffs will slow growth and will increase debt around the world. The IMF recently released its global financial stability report – said that US economic growth was 1.8% per year, a sharp decline from the previously forecast of 2.7%.