Trump Hints at Tariff Rollback on China, But Beijing Isn’t Buying It

In a surprising turn of events, President Donald Trump has signaled a potential de-escalation in the ongoing U.S.-China trade war, suggesting a substantial reduction in the steep tariffs imposed on Chinese imports. This announcement has sparked optimism among global investors but has been met with skepticism by Chinese officials and netizens.

Trump's Tariff Reduction Proposal

On Tuesday, President Trump indicated that the current 145% tariffs on Chinese goods would "come down substantially," though he clarified they "won't be zero." He also pledged a more conciliatory approach in future negotiations, stating he would be "very nice" at the bargaining table and would avoid mentioning contentious issues like the origins of the COVID-19 pandemic. 

Treasury Secretary Scott Bessent echoed this sentiment, acknowledging that the high tariffs were "unsustainable" and hinting at a possible major trade agreement with China. His comments contributed to a rally in global financial markets, with U.S. indexes experiencing significant gains.

China's Response: Skepticism and Demands

Despite these overtures, Chinese officials have remained unmoved. He Yadong, a spokesperson for China's Commerce Ministry, emphasized that the U.S. should remove all unilateral tariff measures and resolve differences through equal dialogue. 

Furthermore, Chinese Foreign Ministry spokesperson Guo Jiakun denied any ongoing negotiations, stating, "To my knowledge, China and the United States have not engaged in any consultations or negotiations on the tariff issue, let alone reached any agreement." 

Domestic Pressures and Economic Implications

Analysts suggest that President Trump's shift in tone may be influenced by domestic pressures, including concerns from major U.S. retailers about the economic fallout from the tariffs. Economist Paul Krugman highlighted that the unpredictability of the tariff policies, rather than the tariffs themselves, poses significant challenges for businesses, potentially leading to reduced investment and consumer spending. 

While the proposed tariff reductions have been welcomed by investors, experts caution that the underlying issues in the U.S.-China trade relationship remain unresolved. The path forward will require careful negotiation and mutual concessions to achieve a sustainable resolution.