U.S. Signals Readiness to Ease China Tariffs in Bid to Stabilize Trade Relations
In a move aimed at reducing tensions with Beijing, the U.S. government is reportedly preparing to scale back tariffs on Chinese imports. The decision, if finalized, would mark a significant shift from the previous administration's hardline trade stance.
According to a Wall Street Journal report citing a White House official, the Biden administration is considering lowering the current China tariffs, some of which reach as high as 145%, to a range between 50% and 65%.
This adjustment would represent a major departure from the broad tariff strategy implemented during former President Donald Trump’s second term.
Sources indicate that the administration is also reviewing a tiered tariff system—a framework originally proposed by a House committee in late 2024. Under that system:
-
Non-strategic imports would face tariffs around 35%
-
Strategic or national security-sensitive products would remain under tariffs of 100% or more
-
The transition would occur gradually over a five-year period
In remarks made Tuesday, former President Trump appeared open to tariff reductions, stating that while they “will come down,” the rate “won’t be zero.”
Treasury Secretary Scott Bessent, speaking privately at an investor briefing, expressed optimism that the trade impasse between the U.S. and China may soon be resolved. His comments reportedly offered reassurance to investors concerned about recent volatility.
Meanwhile, Chinese officials indicated a willingness to resume trade negotiations. However, they cautioned that continued escalatory rhetoric could stall any progress.
This shift in tone comes after weeks of increasing tariffs and hostile language, which triggered sharp declines in global markets. Investor confidence has been shaken by the tit-for-tat measures between the world’s two largest economies.
With both sides now signaling a readiness for renewed dialogue, analysts suggest that a more cooperative phase in U.S.-China trade relations may be on the horizon.
Comments
Post a Comment