Did Trump Concede? 145% Tariffs on China May Be Reduced

Since Donald Trump began his second term, he has announced a series of shocking tariff hikes in terms of scale, speed, and scope. The aggressive moves in recent weeks have caused intense volatility in global markets, disrupting international trade and investment patterns.

Trump later announced a suspension of reciprocal tariffs on more than 75 countries. Still, tariffs on Chinese goods continued to rise, eventually reaching 145%, marking the beginning of a second round of the U.S.-China trade war.

Tariffs on China May Be Lowered

Amid the ongoing deadlock in the trade war, Trump made a rare concession on April 22.

He acknowledged that

The excessively high tariffs had significantly driven up product prices, making many Chinese goods unable to enter the U.S. market. The 145% tariff rate is indeed high, he admitted, and tariffs on Chinese goods may be substantially reduced—though not to zero.

U.S. Considering Adjustment Plans

According to The Wall Street Journal on April 23, senior U.S. officials revealed that the Trump administration is cautiously evaluating several adjustment options. One plan involves lowering the tariff rate on Chinese goods to around 50 - 65%. Another proposal introduces a "tiered tariff" system, dividing Chinese imports into two categories: those that do not pose a national security threat, and those deemed of strategic significance. Under this scheme, the former would face tariffs of around 35%, while the latter could be taxed at rates of 100% or more.

No Plans to Replace Powell

The South China Morning Post also reported that following these developments, Trump announced he would no longer consider replacing Federal Reserve Chair Jerome Powell. This news boosted U.S. markets: the Dow Jones Industrial Average and S&P 500 both closed up over 1%, and the Nasdaq rose more than 2.5%.

China’s Firm and Clear Position

In response to the U.S.-led tariff war, China has maintained a firm and clear stance: “We do not want a trade war, but we are not afraid of one. If there’s a fight, we will fight to the end. If there’s dialogue, our door is always open.”

Foreign Ministry spokesperson Guo Jiakun emphasized that

China has consistently stated that there are no winners in trade or tariff wars. Protectionism is a dead end, and decoupling will only lead to self-isolation.

Conclusion

The Trump administration’s unpredictable tariff policy has intensified global market uncertainty, while China has continued to demonstrate composure and resilience. The future of U.S.-China economic and trade relations remains uncertain and will depend on the direction of both sides’ policies and progress in negotiations. Stay tuned for more insightful updates and articles to come.