Trump Considers Significantly Lowering Tariffs on Chinese Goods to Between 50% and 54%: Markets Closely Watching Ahead of US-China Trade Talks

President Trump of the United States is considering reducing tariffs on Chinese imports from 145% to a range of 50% to 54%. This move coincides with trade negotiations between high-level U.S. and Chinese officials in Switzerland from May 9 to 12. The White House stressed that the final decision is yet to be made and will be personally announced by the President. Markets and industries are closely watching the impact of this policy change on the global supply chain.

Trump's Change in Attitude: From Tough to Signaling Adjustment

On May 8th, during a press conference at the White House, President Trump stated that if the upcoming U.S.-China trade talks progress smoothly, he would consider reducing the punitive tariffs on Chinese goods. He noted that the current tariffs on China have reached 145%, "it can't possibly go any higher," and added, "We know it will come down."

These remarks stand in stark contrast to Trump's hardline stance the previous day, when he explicitly stated that he would not make concessions to bring China back to the negotiating table. However, with both sides confirming high-level talks in Switzerland from May 9th to 12th, Trump's tone has noticeably softened, expressing belief that "this will be a meeting with substantial content."

Proposed Adjustments: Tariffs on Chinese Goods May Drop to 50% to 54%

According to reports from the New York Post and other media outlets, the Trump administration is actively discussing a significant reduction of tariffs on Chinese goods from 145% to between 50% and 54%. This adjustment could be announced as early as next week. Sources close to the negotiations indicated, "They will lower the tariffs on China to 50% during the talks."

Additionally, the Trump administration is considering simultaneous tariff reductions on other Asian countries, particularly India and Vietnam, with rates potentially dropping to 25%. This move is seen as paving the way for upcoming multilateral trade negotiations and responding to pressure from the retail and manufacturing sectors over high tariff costs.

Current Tariff Background: 145% Punitive Tariffs and Chinese Retaliation

Since April 9, 2025, the U.S. has imposed punitive tariffs of up to 145% on Chinese imports, with cumulative rates on some goods reaching 245%. China retaliated two days later with a 125% tariff on U.S. goods and restricted rare earth material exports.

This new round of tariff wars has significantly impacted bilateral trade. Reports indicate a 60% annual decrease in the number of Chinese export ships to the U.S., a 35% drop in cargo volume at the Port of Los Angeles, and U.S. retailers' inventory cycles shrinking to historic lows. Federal Reserve Chairman Powell also noted that while market sentiment has worsened, "the full impact of the tariffs has yet to be felt."

Upcoming U.S.-China Talks: Switzerland as a Key Stage

Both sides have confirmed high-level economic and trade talks in Switzerland from May 9th to 12th. The U.S. delegation includes Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while the Chinese side is led by Vice Premier He Lifeng.

This marks the first face-to-face consultation on tariff issues since the new round of tariff wars erupted. Trump stated that his relationship with Chinese President Xi Jinping is "very good" and looks forward to direct dialogue with Xi after the talks.

However, White House spokesperson Kush Desai emphasized that all tariff policies are still under discussion, with no final decisions made, "Once a tariff decision is made, it will be announced by the President himself, and everything else is pure conjecture."

Industry and Market Reaction: Retailers Closely Watching

High tariff policies have placed significant pressure on the U.S. retail and manufacturing sectors. Reports indicate that Trump met with CEOs of retail giants like Walmart, Target, and Home Depot last month to discuss potential tariff adjustments. After the meeting, all parties described the talks as "constructive and promising" but did not disclose specific details.

Jay Foreman, CEO of toy manufacturer Basic Fun, revealed that the market has received signals that the tariffs on Chinese goods may drop to 54%, "The signals we've received suggest the floodgates will open this weekend or next week, and adjustments will be made."

Policy Context and International Response

Since early April, the Trump administration has launched a so-called "reciprocal tariff" policy, imposing tariffs ranging from 11% to 50% on goods from multiple countries, and implemented a 145% rate on Chinese goods on April 9th. While tariffs on other countries have been temporarily suspended for 90 days, the high tariffs on China remain in effect.

Against this backdrop, Trump announced on May 8th the first trade agreement with the UK and hinted at a potential shift in China policy during a press conference. He stated, "We are using tariffs to create our own benefits," and emphasized, "China is eager to reach an agreement."

The Chinese Ministry of Foreign Affairs stated that Vice Premier He Lifeng will engage in in-depth exchanges with the U.S. on economic and trade issues and emphasized China's willingness to advance negotiations based on equality and mutual respect.

References

• 川普又髮夾彎！美媒：對中關稅將降至50％
• 若美中會談進行順利 川普可能考慮調降關稅 | 國際焦點 | 國際 | 經濟日報
• 川普縮了？爆大砍對中國關稅「145%→50%」 美財長發話：3位數不可行
• Trump administration may half 145% China tariff to 50% next week: Report - Times of India
• Trump hints tariffs on China may drop as talks set to begin
• Trump may cut tariffs on China imports to as low as 50%: Report
• 川普傳大砍對中關稅「145%→50%」　最快下周生效 | ETtoday國際新聞 | ETtoday新聞雲
• 若美中會談進展順利 川普：不排除調降145%對中關稅 | 世界新聞網