President Trump Announces Significant Reduction of 145% Tariffs on Chinese Imports Amid Trade Tensions

President Donald Trump announced plans to reduce the 145% tariffs on Chinese imports, though not eliminate them, signaling a potential de-escalation in U.S.-China trade tensions. Speaking at the White House, Trump cited high tariffs as unsustainable and emphasized his relationship with Chinese President Xi Jinping. Treasury Secretary Scott Bessent echoed the need for change, calling the current situation unsustainable. Despite no formal negotiations, Trump expressed optimism for a future deal. The tariffs have faced criticism from U.S. retailers and the IMF, which lowered U.S. growth forecasts due to trade uncertainties.

Trump: “It Won’t Be That High”

During a press availability in the Oval Office, President Trump addressed the future of tariffs on Chinese goods, stating, “145% is very high, and it won’t be that high. It will come down substantially. But it won’t be zero. It used to be zero.” He added, “We were just destroyed. China was taking us for a ride.”

Trump’s comments reflect a notable shift in tone from earlier in his administration, when he championed aggressive tariffs as a tool to rebalance trade and protect American industries. The 145% tariff rate, imposed during his second term, has been one of the most controversial elements of his trade policy, prompting retaliatory measures from Beijing and concern among U.S. retailers and manufacturers.

Treasury Secretary Bessent: “Status Quo Is Not Sustainable”

Trump’s remarks followed a closed-door investor conference earlier in the day, where Treasury Secretary Scott Bessent told attendees that the U.S.-China tariff standoff is not viable in the long term. “No one thinks the current status quo is sustainable,” Bessent said, according to multiple reports. He added that a “de-escalation” should be expected, though he cautioned that negotiations with China would be “a slog.”

Bessent’s comments were echoed by market reactions, with U.S. stock indexes rising more than 2% following his remarks. The optimism was further fueled by speculation that the administration is preparing the groundwork for formal trade talks with Beijing, although no such negotiations are currently underway.

Trump Cites Trade Imbalances and Past Policy Failures

In explaining his position, Trump reiterated his belief that previous administrations had allowed China to exploit the U.S. through unfair trade practices. “It used to be zero,” he said of the tariff rate. “We were just destroyed. China was taking us for a ride.”

Trump has long argued that the U.S. trade deficit with China is evidence of systemic imbalances that needed to be corrected through tough measures. His administration has maintained that the tariffs were necessary to force Beijing to the negotiating table and to protect American intellectual property and manufacturing jobs.

Relationship with Xi Jinping

Despite the high tariffs and ongoing tensions, Trump struck a conciliatory tone when discussing his relationship with Chinese President Xi Jinping. “I have a great relationship with President Xi,” Trump said. “We’re going to live together very happily and ideally work together.”

He added, “We’re doing fine with China,” and emphasized that both sides would be “very nice” in any future negotiations. However, when asked whether he would play “hardball” with Beijing, Trump demurred, saying, “We’ll see what happens.”

White House Press Secretary Karoline Leavitt confirmed that there had been no recent direct communication between Trump and Xi, but said the administration is “setting the stage for a deal with China.” She added, “The president and the administration are doing very well in respect to a potential trade deal with China.”

China’s Response and Global Reactions

China has not formally responded to Trump’s latest comments, but Chinese officials have consistently criticized the tariffs. On Monday, President Xi reportedly said, “Trade war and tariff war will produce no winner, and protectionism will lead nowhere,” in remarks widely interpreted as a rebuke of Trump’s policies.

Chinese state media, including China Daily, described the tariffs as “emblematic of the MAGA agenda’s populist protectionism” and warned of their destabilizing effects on global trade. On Chinese social media platform Weibo, Trump’s remarks trended under hashtags suggesting he had “admitted defeat.”

Meanwhile, the International Monetary Fund (IMF) has revised its forecast for U.S. economic growth downward, citing the impact of tariffs and global uncertainty. In its latest World Economic Outlook, the IMF projected U.S. growth at 1.8% for 2025, down from 2.8% earlier in the year.

Industry Concerns and Retail Engagement

The retail sector has been particularly vocal about the impact of tariffs. Executives from Walmart and Target met with Trump earlier this week to express concerns about rising costs and supply chain disruptions. Freightwaves reported that a model from Cirrus Global Advisors estimated a $22 billion contraction in the logistics industry if the de minimis exemption is removed and tariffs remain in place.

Trump is scheduled to meet with additional retail executives on Monday to discuss potential exemptions and adjustments. He has previously suggested that certain sectors, such as the auto industry, could receive relief from the tariffs.

No Formal Talks Yet, But “Ball Is in China’s Court”

Despite the shift in rhetoric, formal trade negotiations between the U.S. and China have not yet begun. Leavitt stated that while over 100 countries have reached out to initiate trade talks with the U.S. following Trump’s sweeping tariff announcements, China is not among them.

“The ball is in China’s court,” Leavitt said, quoting a statement from Trump. “China needs to make a deal with us. We don’t have to make a deal with them.”

Still, Trump expressed confidence that a resolution would be reached. “I think it’s going to work out very well,” he said.

References

• President Trump says tariffs on China will 'come down substantially'
• The global economy will be hit hard by Trump's tariffs, IMF warns
• Trump tariffs live updates: Trump says China tariffs won't stay at 145%, Bessent hints at deescalation
• White House: Trump ‘setting the stage for a deal with China’
• Trump says China tariffs will drop ‘substantially – but it won’t be zero’
• Trump admits China’s tariffs will drop ‘but it won’t be zero’
• White House on tariff deal with Beijing: ‘The ball is in China’s court’