The Trump administration is reportedly considering reducing tariffs on Chinese imports to between 50% and 65%, down from the current peak of 245%, as part of ongoing negotiations with Beijing. This move aims to ease trade tensions and is not yet finalized. Options under discussion include a tiered tariff system, imposing lower rates on non-sensitive goods while maintaining higher duties—over 100%—on items deemed strategic to U.S. interests.
President Trump, who had significantly increased tariffs since returning to office in January, indicated that current tariff levels are unsustainable and hinted at substantial reductions if a deal is reached. However, he also warned that without an agreement, the U.S. would proceed with its own terms.
Financial markets responded positively to the news, with the S&P 500 rising 3.3% to a two-week high, reflecting investor optimism over potential tariff relief and improved U.S.-China relations.
