Trump blinks: 'Substantially' lower China tariffs promised

Detail? Rationale? Timeline? Nope! It's the art of the squeal

World War Fee President Donald Trump on Tuesday said his administration plans to lower the 145 percent tariffs it levies on goods imported into America from China, continuing his pattern of unpredictable shifts in policy.

Trump revealed the trade war climbdown during a press Q&A session in the White House when asked if the current 145 percent tariff effectively represented a trade embargo.

“145 percent is very high and it won't be that high,” the President responded. “It's not going to be that high."

"It got up to there [because] we were talking about fentanyl," the commander in chief added, referring to an emergency he declared over the smuggling of the drug into the US from the Middle Kingdom as the basis for at least some of his import taxes. "Various elements built it up to 145. No, it won’t be anywhere near that high.”

It won’t be anywhere near that high ... It will come down substantially but it won’t be zero

Asked what level of tariffs he plans to impose on Chinese imports, Trump answered: “It will come down substantially but it won’t be zero.”

He later said future tariffs “will not be anywhere near that number.”

Trump did not elaborate on the reason for reducing the tariffs nor mention any negotiations or concessions that have made it appropriate to change the duty regime he has previously said is vital to the USA’s national and economic security.

Nor did he hint at any particular reasoning or strategy behind his regime's many changes in China tariff policy, which started with a 34 percent duty imposed on April 2 before leaping to 145 percent a week later, and settling even higher for some goods.

The President did say he hopes to build a strong and mutually beneficial relationship with Beijing.

The Republican's remarks came the day after Treasury Secretary Scott Bessent reportedly told an investment conference the 145 percent tariff was effectively a “trade embargo,” said "no one thinks" the current 145 percent tariff is “sustainable,” and suggested a “de-escalation” will soon occur.

Bessent reportedly told his audience the change in tariff policy would ease investor concerns, a matter of some importance as major stock market indices dipped sharply after the White House announced its tariff plans and are down around 15 percent since Trump took office. Turmoil in the bond market, stemming from the tariffs and other policies, also got the administration's attention.

The Treasury boss also indicated it would take two to three years to hash out a trade deal with China.

Trump and Bessent’s hints about tariff cuts come as China’s Ministry of Commerce on Tuesday warned it will use “countermeasures” against any country that strikes a trade deal with the USA on terms that harm the Middle Kingdom.

A foreign ministry spokesperson also made it plain that China won’t back down in any trade dispute with the US.

“Appeasement cannot bring peace, and compromise cannot be respected,” the spokesperson said. “To seek so-called exemptions at the expense of others' interests for one's own temporary selfish interests … will ultimately fail on both ends and harm others without benefiting oneself.”

News of the plan to lower tariffs was welcomed by investors, with shares in the likes of Apple, Nvidia, Dell, Qualcomm, and Broadcom all spiking a few points in after-hours trading.

It’s not hard to see why: Tech companies source many products and components from China and a 145 percent tariff will lead to significant price hikes that buyers and businesses may not be able to afford.

But it’s probably way too early to pop the champagne, as the Trump administration is conducting a review of the semiconductor industry to help it determine appropriate tariffs for imported chips – and has previously flagged duties of between 25 percent and 100 percent. Those numbers are lower than 145 percent but will still increase costs of many components. ®

Updated to add on April 23

Secretary Bessent is now trying to soften the regime's hard-line "America first" approach to trade.

“‘America First’ does not mean America alone. To the contrary, it is a call for deeper collaboration and mutual respect among trade partners,” Bessent said Wednesday at an Institute of International Finance event in Washington, DC.

Nothing says collaboration and respect with allies like threatening to invade them, lecturing them on freedom and free speech, and whacking large import tariffs on their goods.

Bessent also tried to claim there was, despite Trump publicly promising to cut the import tax rate on China, "no unilateral offer from the president to deescalate," but then said:

"I don't think either side believes that the current tariff levels are sustainable, so I would not be surprised if they went down in a mutual way."

So they are going down? Some, any level of coherency and consistency would be ace right about now, fellas.