The Trump administration is considering reducing the high 145% tariff on Chinese goods by more than half, potentially as early as next week. This decision comes as the US and China prepare for important trade talks in Switzerland, according to a report from The New York Post.
US officials are looking into lowering the tariff to around 50% to 54%. This move is meant to help ease tensions between the two countries as negotiations continue. Along with this, there is also a plan to cut tariffs on imports from neighboring South Asian countries to 25%.
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A source close to the talks told The Post that the tariff could be brought down to 50% while the negotiations are still ongoing. President Trump hinted at this change during a meeting with UK officials in the Oval Office. He mentioned that the 145% tariff would be reduced, expressing confidence in improving US-China relations.
Retail leaders, including Walmart’s Doug McMillon, Target’s Brian Cornell, and Home Depot’s Ted Decker, reportedly asked Trump to consider lowering the tariffs during a meeting at the White House in April. While the meeting was described as productive, no clear outcomes were announced.
Retailers are already preparing for different tariff scenarios. Jay Foreman, CEO of toy company Basic Fun, shared that many are asking their suppliers to quote prices for tariffs between 10% and 54%. He explained that a 54% tariff could still raise prices, like the price of a Tonka truck going from $29.99 to $49.99, but that’s “manageable.” However, a 145% tariff would raise the price to nearly $80, which could cause a huge drop in sales.
Nick Mowbray, CEO of toy brand Zuru, said that while many believe the tariff will be 54%, it has not yet been officially confirmed to retailers.
Despite the rumors, the White House has dismissed talk of the tariff cut, calling it speculation. A spokesperson said that when any decisions on tariffs are made, they will come directly from President Trump.
However, retail leaders feel more confident that a change is coming after Treasury Secretary Scott Bessent recently said the current tariff rate “isn’t sustainable.” Lawrence Rosen, chairman of Cra-Z-Art, confirmed that retailers are hearing the same thing, with expected tariffs of 50% to 54% for China and 25% for other Asian countries.
Foreman mentioned that Basic Fun already has shipments on the way to the US under the 145% tariff and plans to store them to avoid the higher cost. The rest of their shipments are on hold, waiting for the green light.
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Noel Hacegaba, COO of the Port of Long Beach, said that people are hopeful the talks in Switzerland will help reduce trade tensions, but they need clear signals before making any changes to shipping routes.
Retail expert Gerald Storch, former CEO of Toys R Us, added that since the White House meeting, retailers seem less worried and have started relaxing their need to move production to the US.
While things are still uncertain, the toy industry, which gets 80% of its toys from China, and the broader retail sector, are watching closely for any official announcements from President Trump in the coming days.
