US President Donald Trump has signalled a potential softening of his administration’s trade stance towards China, indicating that the high tariffs imposed amid the ongoing trade conflict could be significantly reduced.
Speaking at a White House press event on 22 April, Trump told reporters that tariffs on Chinese imports — which have reached as high as 145% — would “come down substantially,” though not be removed entirely.
“145% is very high and it won’t be that high,” Trump said during a Q&A session in the Oval Office. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”
The statement marks a notable rhetorical shift following months of aggressive tariff increases and retaliatory measures by both Washington and Beijing, which have severely curtailed bilateral trade and disrupted global markets.
The remarks followed comments made earlier in the day by US Treasury Secretary Scott Bessent at a JP Morgan Chase-hosted investment conference, where he reportedly stated that the current tariff regime had amounted to an “effective embargo” on trade between the United States and China. According to a source familiar with the meeting, Bessent described the situation as “unsustainable” and predicted that a de-escalation was imminent. He also emphasised that the objective was not a complete decoupling of the two economies but rather a rebalancing of the trading relationship.
News of Bessent’s assessment prompted a rally on Wall Street, with all three major US stock indexes reaching their highest levels of the day. Asian markets followed suit, with Hong Kong’s Hang Seng Index rising 2.5%, Japan’s Nikkei 225 up 2%, and South Korea’s Kospi gaining 1.5%.
In China, Trump’s comments quickly gained traction on social media. A hashtag translating to “Trump chickened out” became one of the top trending topics on Weibo, generating over 110 million views by Wednesday morning.
The trade dispute between the world’s two largest economies has intensified in recent months, with both sides implementing record-high tariffs. China has responded with its own measures, including tariff hikes on US imports up to 125%, placing more American firms on its export control and unreliable entity lists, and restricting the export of critical raw materials essential to electronics and defence production.
Additionally, Beijing has taken steps to impact key US sectors such as aviation and entertainment. Recent measures included returning two Boeing aircraft intended for Chinese carriers and further limiting the number of Hollywood films permitted in Chinese cinemas.
Despite the heightened tensions, Trump reiterated his belief in maintaining a personal rapport with Chinese President Xi Jinping. “I have a very good relationship with President Xi,” he said, adding that he was waiting for the Chinese leader to initiate negotiations. “We’re going to be very nice. They’re going to be very nice, and we’ll see what happens.”
He dismissed suggestions that the US would exert further pressure or invoke the COVID-19 pandemic in future trade discussions. “No, no, we’re going to be very nice,” he said, before adding: “Ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States, and we want them involved.”
China, for its part, has stated that it remains open to negotiations, but only on the basis of mutual respect and parity. A person familiar with Beijing’s position told CNN that the Chinese government had previously designated an official to lead talks but was uncertain about the appropriate US counterpart. The source suggested that Trump’s preference to act as his own lead negotiator was at odds with Chinese protocol.
The same source indicated that Beijing had been unsettled by inconsistent messaging from the US administration, noting that Trump had not publicly distanced himself from hawkish remarks made by senior members of his cabinet, including Vice President JD Vance. Earlier this month, Vance sparked controversy in China following an interview in which he referred to “Chinese peasants,” a remark that drew widespread criticism online and was formally condemned by Chinese officials.
As markets and observers continue to digest the implications of Trump’s latest remarks, it remains unclear whether a reduction in tariffs will materialise in practice or whether they form part of a broader strategy to recalibrate the US position ahead of any formal negotiations with Beijing.
For now, both governments appear to be maintaining their public positions — with Washington signalling openness to dialogue but refraining from initiating it, and Beijing insisting on clearer signals of consistency and mutual respect before any talks proceed.
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Trump Pauses Global Tariffs for 90 Days, But Raises Duties on China to 125%
