In a surprising yet somewhat measured shift, U.S. President Donald Trump has suggested that the steep tariffs currently imposed on Chinese goods will be “substantially” reduced in the near future, although he was quick to add that they would not be eliminated entirely.
Speaking at a White House press conference on Tuesday, Trump addressed rising concerns about the long-term viability of the U.S.-China trade impasse. His remarks came in the wake of comments earlier the same day by Treasury Secretary Scott Bessent, who described the current tariff levels as “unsustainable.”
Over the past year, Trump has maintained an aggressive trade posture, culminating in a 145% import tax on Chinese goods a move that prompted retaliatory tariffs of 125% from Beijing. This tit-for-tat escalation has rattled global markets, weighed on consumer prices, and sparked warnings from economists about long-term consequences for global trade stability.
Despite the harsh measures and the impact on investor confidence, Trump appeared to adopt a more conciliatory tone when speaking about U.S.-China relations.
“We’re doing fine with China,” he said confidently, even as pressure mounts domestically and abroad to ease economic tensions.
Trump clarified that while the tariff rate would come down significantly, it wouldn’t return to zero. “It won’t be that high, not going to be that high,” he noted, signaling a future reduction but reaffirming his broader philosophy of “reciprocal tariffs” a trade doctrine that has underpinned his approach to global commerce since taking office.
What stood out most, however, was Trump’s rhetoric around diplomacy and cooperation. While defending the tough stance, he also offered surprisingly warm words for Chinese President Xi Jinping.
“We’re going to live together very happily and ideally work together,” Trump said, framing his trade policy not as a conflict but as part of a larger strategy to rebalance global trade on America’s terms.
The remarks reflect a president navigating between ideological firmness and geopolitical pragmatism. On one hand, Trump has repeatedly insisted that high tariffs protect American industries and jobs. On the other, there’s growing consensus even within his administration that the current levels could backfire if left unchecked.
The immediate market reaction to his comments was mixed. Some investors welcomed the hint at easing tensions, while others remained wary of the lack of specifics or timelines. For global manufacturers, importers, and consumers, the uncertainty lingers.
Whether these words mark the beginning of a broader de-escalation or simply a political recalibration remains to be seen. But one thing is clear: even Donald Trump, the self-styled tariff warrior, is acknowledging that 145% might just be too high for both economies.
