White House to consider cutting China tariffs as part of talks, source says

A drone view shows a cargo ship at Kwai Tsing Container Terminals in Hong Kong, China, April 16, 2025. REUTERS/Tyrone Siu/File Photo
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 be in conjunction with
negotiations and not made unilaterally.
The source's comments followed a Wall Street Journal report,
citing people familiar with the matter, that the White House is considering
cutting its tariffs on Chinese imports in a bid to de-escalate tensions with
Beijing.
China tariffs could come down to between 50% and 65%, the
paper said, citing a White House official. President Donald Trump, since
returning to the White House in January, has ramped up tariffs on Chinese
imports to 145%.
Trump has not made a decision, the Journal said, adding that
the discussions remain fluid and several options are on the table.
The White House did not immediately respond to a request for
comment.
U.S. stocks extended their early session gains after the
report. The market had opened sharply higher on a combination of relief among
investors over comments from Trump late on Tuesday that were seen as
constructive about the tariffs on China, and on Trump backing away from threats
to fire the head of the Federal Reserve. The benchmark S&P 500 index
was up 3.3% at a two-week high in mid-morning trading.
On Tuesday, Trump expressed optimism that he would
make progress with China that would substantially lower tariffs on their
import,s but also warned that "if they don't make a deal, we'll set the
deal."
Trump said a deal would result in "substantially"
lower tariffs on Chinese goods.
"It won't be that high," Trump said when asked
about the current rates. "It won't be anywhere near that."
The Journal said the administration is also considering 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.
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