April 23, 2025 (MLN): The Trump administration is considering lowering tariffs on imported Chinese goods pending ongoing talks with Beijing, a source familiar with the matter confirmed.
The discussions come as a delegation of Chinese officials, including the Chinese Finance Minister and Governor of the Chinese Central Bank, visits Washington this week.
According to the Wall Street Journal, the delegation's visit could be extended or rescheduled depending on the Trump administration's willingness to meet with the officials.
The tariff cuts being considered could reduce the current levels from 145% to between 50% and 65%, the Journal reported, citing a White House official.
President Trump, addressing reporters on Wednesday, indicated that the U.S. is looking for a "fair deal with China" but did not confirm the specifics of the tariff reductions.
His comments followed earlier optimistic remarks on Tuesday that a deal to lower tariffs with China was indeed possible, as Reuters reported.
White House spokesperson Kush Desai added that any reports regarding tariffs were "pure speculation" unless confirmed directly by President Trump.
Despite this, markets responded positively to the potential shift in trade policy, with U.S. stocks extending their gains after Trump backed away from his earlier threats to fire the head of the Federal Reserve.
The proposed tariff reductions would likely still be high enough to impact trade between the world's two largest economies.
German shipping company Hapag-Lloyd reported that 30% of its U.S.-bound shipments from China had been cancelled, a sign of the ongoing disruption caused by the tariffs.
In retaliation, China has imposed 125% tariffs on U.S. imports and implemented additional trade measures.
Treasury Secretary Scott Bessent noted that both the U.S. and China consider the current tariff rates unsustainable, though he could not provide a timeline for when negotiations would begin.
Meanwhile, separate talks between the two countries over tackling the fentanyl epidemic have yet to yield any meaningful results.
The discussions on tariffs remain fluid, with several options still on the table.
One possibility, according to the Wall Street Journal, involves a tiered approach, with lower tariffs on goods deemed not a threat to U.S. national security and higher tariffs on items of strategic importance to America.
This proposal follows a similar bill suggested by the House of Representatives committee on China last year, which called for phased-in levies over five years.
In addition to the tariffs on China, President Trump has imposed a blanket 10% tariff on all other U.S. imports and higher duties on steel, aluminum, and automobiles.
These measures have caused volatility in financial markets and raised concerns about a potential recession.
The International Monetary Fund warned that the global economic growth could slow, and global debt could rise as a result of the tariffs.
Copyright Mettis Link News
Posted on: 2025-04-23T21:56:19+05:00
