The US government is considering reducing tariffs on Chinese imports to between 50% and 65%, according to a report. These discussions are part of ongoing trade talks between the US and China.
Since returning to office in January, President Donald Trump has increased tariffs on some Chinese goods to as high as 245%. However, he has not made a final decision about cutting the tariffs. The Wall Street Journal reported that the White House is actively exploring the idea of lowering tariffs as a step toward improving relations with China.
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One plan being discussed includes a tiered system, where non-sensitive goods would have lower tariffs, while important or “strategic” items could still face high duties—over 100%.
The stock market reacted positively to the news. On Wednesday morning, the S&P 500 index rose by 3.3%, reaching its highest level in two weeks. This rise came after President Trump made a statement on Tuesday suggesting that current tariffs might not stay that high. “It won’t be anywhere near that,” he said. He added that if a deal is made with China, tariffs could be lowered significantly. But he also warned, “If they don’t make a deal, we’ll set the deal.”
So far, the White House has not given an official statement on the reports.
