Trump Considers Slashing China Tariffs
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What is President Trump's plan regarding China tariffs?
What he's considering right now is a small positive sign for de-escalation, but it doesn't fundamentally change the overall dynamics with China. But it's a move, and now the ball is in China's court.
Plus, why even a trade war U-turn might not restore confidence in U.S. assets for foreign investors. And President Trump blames Ukrainian President Zelensky for failing to accept a U.S. peace plan. It's Wednesday, April 23rd. I'm Alex Osola for The Wall Street Journal. This is the p.m. edition of What's News, the top headlines and business stories that move the world today.
We're exclusively reporting that the Trump administration is considering slashing its steep tariffs on Chinese imports in a bid to de-escalate tensions with Beijing. That's according to people familiar with the matter. A White House spokesman said that tariff decisions will come directly from the president and that anything else is speculation. Later in the day, Bloomberg News reported that Treasury Secretary Scott Besant said told reporters that Trump hasn't offered to take down U.S. tariffs on China on a unilateral basis. For more, I'm joined by WSJ chief China correspondent Lingling Wei. Lingling, you write that President Trump hasn't made up his mind fully about this yet, but what are some of the plans floating around?
For now, nothing has been decided. The administration officials have told us that whatever action the Trump administration takes wouldn't be unilateral. They would also want to see some action from China as well to lower tariffs. So for the Trump administration, at least a couple of options are on the table right now. One involves reducing the current very, very high tariffs of 145%. on Chinese imports to between roughly 50% and 65%. Another approach involves adopting a tiered system, similar to some legislation proposed by the House Committee on China late last year. Under that approach, the tariffs would be reduced to 35% for non-strategic products, Basically, things that are not considered the threat to U.S. national security.
And at least 100 percent tariffs for items deemed strategic to U.S. interests.
How might tariff reductions affect U.S.-China relations?
What has China said about this? Are they open to these conversations?
China has indicated that they're willing to talk, but they do not want to talk under a lot of pressure. The signaling is being viewed positively in Beijing. Now comes the hard part, how to get the negotiations process started.
What options does the Trump administration have for tariffs?
Is there any indication that this could ease tensions or be the beginning of easing tensions beyond the tariff conversation?
President Trump is signaling willingness to de-escalate because he clearly is coming under pressure. What he's considering right now is a small positive sign for de-escalation, but it doesn't fundamentally change the overall dynamics with China. Even if the tariffs come down to, say, 50%, 60%, that still means the U.S. market is largely closed to Chinese. exporters. So fundamentally, it doesn't change the overall picture, but it's a move. And now the ball is in China's court.
That was WSJ chief China correspondent Lingling Wei. Thanks, Lingling.
Thank you.
A rally in U.S. stocks continued for a second day after the Trump administration addressed two of the market's biggest concerns by softening its tone on both China and the Federal Reserve. The Dow closed up more than 400 points, or roughly 1.1 percent. The S&P 500 rose about 1.7 percent, and the Nasdaq added 2.5 percent. Business's tariff problem is rapidly becoming consumers' problem.
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Chapters
6 chapters
1
What is President Trump's plan regarding China tariffs?
0:40–3:14
2
How might tariff reductions affect U.S.-China relations?
3:14–3:37
3
What options does the Trump administration have for tariffs?
3:37–7:17
4
Are businesses ready to pass on tariff costs to consumers?
7:17–7:51
5
What strategies are companies using to adjust prices?
7:51–10:10
6
Are there companies that choose not to raise their prices?
10:10–13:01
Speakers
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