Trump hints at cutting China tariffs ‘substantially’ from 145%
Washington and Beijing may soon strike a trade deal. President Donald Trump said China's hefty tariff rate of 145% will also likely drop "substantially."
President Donald Trump said on Tuesday that the hefty tax rate of 145% Americans must currently pay for Chinese imports will likely be reduced significantly.
While Trump said the rate "won’t be zero," he expressed optimism over a potential trade deal with Chinese President Xi Jinping.
"One hundred forty-five percent is very high, and it won’t be that high," Trump said to reporters in the Oval Office. "It will come down substantially, but it won’t be zero."
White House spokesman Kush Desai said to FOX Business in a statement that the U.S. is not looking to lower tariffs unilaterally and that China still must negotiate.
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"President Trump has been clear: China needs to make a deal with the United States of America," Desai said. "When decisions on tariffs are made, they will come directly from the president. Anything else is just pure speculation."
While Trump did not detail how much lower the tariff rates could be, he said a trade deal with China could potentially "work out very well."
"They’re going to do very well, and I think they’re going to be happy, and I think we’re going to live together very happily and ideally work together," Trump said.
The president made the remarks after Treasury Secretary Scott Bessent told an investor summit on Tuesday that the standoff between Washington and Beijing was unsustainable, a source who attended the summit told FOX Business.
In recent weeks, financial markets have plunged over fears of a global trade war after Trump revealed aggressive tariff plans on some of the world’s biggest economic powers.
While the tariff rate on China first began at 34%, the rate significantly increased to 145% in reaction to Beijing levying retaliatory measures. However, Trump said tariffs will likely not remain "anywhere near that number."
White House press secretary Karoline Leavitt said on Tuesday that Washington was "doing very well in respect to a potential trade deal with China," and that numerous countries have made proposals to the Trump administration.
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"There is a lot of progress being made," Leavitt said to reporters. "We now have 18 proposals on paper that have been brought to the trade team. Again, these are proposals on paper that countries have proposed to the Trump administration and to our government."
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