Trump Specifies Timeline for Possible Tariff Reduction on China Just One Day After Initial Remarks
U.S. Treasury Secretary: "There Is an Opportunity for a U.S.-China Big Deal"
"Current Tariff Levels Are Unsustainable"... Suggests Mutual Reductions
WSJ: "White House Considering Reducing China Tariffs to 50-65 Percent"
U.S. Extends Repeated Overtures to China... Will Trade Talks Progress?
U.S. President Donald Trump has been issuing conciliatory messages toward China, with which he is engaged in a tariff war. Cornered by financial market turmoil triggered by tariffs, Trump, after hinting at a possible reduction in tariffs on China, stated on the 23rd (local time), "We will decide on the tariff rate on China within the next two to three weeks." Scott Besant, the U.S. Treasury Secretary in charge of tariff negotiations, also mentioned the possibility that both the U.S. and China could lower tariffs simultaneously as part of a "big deal" between the two countries.
Attention is now focused on whether the U.S.-China trade war, which had escalated toward a full-scale confrontation under Trump's imposition of triple-digit tariffs on China, might find a breakthrough for negotiations due to his repeated retreats.
President Trump, when asked by reporters in the Oval Office about the timing of a possible tariff reduction on China, replied, "It's up to China."
He added, "We are currently negotiating tariffs with 90 countries," and said, "I think we are going to make a great deal." He continued, "We will set the tariff rate in the next two to three weeks," and noted, "China may be included."
This comes a day after he mentioned the possibility of lowering tariffs on China, and now he has specified a concrete timeline. The previous day, Trump had said that negotiations with China were "going well" and that the current tariff rate of 145% was "too high" and would "come down substantially."
Trump also expressed strong willingness to negotiate with China earlier that morning. When asked by reporters whether he was actively negotiating with China, he replied, "Everything is active." When asked if an agreement was being reached with China, he said, "It will be fair."
In this regard, the Wall Street Journal (WSJ) reported that the Trump administration is considering lowering the additional tariffs imposed on China during its second term from the current 145% (20% fentanyl tariff + 125% reciprocal tariff) to between 50% and 65%, more than halving the rate. The administration is also reportedly considering imposing differentiated tariffs on Chinese goods depending on whether they pose a national security threat.
Treasury Secretary Besant, who oversees tariff negotiations, also mentioned the possibility that both the U.S. and China could lower tariffs simultaneously as part of a "big deal" between the two countries.
Speaking at an Institute of International Finance (IIF) forum held in Washington, D.C., Besant said, "There is an opportunity for a big deal between the U.S. and China," and added, "If they (China) want (trade) rebalancing, let's do it together." He continued, "More than 100 countries have approached us to help with global trade rebalancing," and said, "We are having meaningful discussions. We also look forward to discussions with China and others."
This is the second consecutive day that conciliatory messages have been issued, following his previous statement that the U.S.-China tariff war is unsustainable and that "the situation will ease in the very near future." The intention appears to be to ease tensions between the two countries to calm market unrest caused by the tariff war and to bring China back to the negotiating table.
He also made it clear that, before U.S.-China trade negotiations, there is a need to lower tariffs on China, and that both sides should lower tariffs simultaneously.
After the IIF event, when asked by reporters whether President Trump had proposed a tariff reduction on China, Secretary Besant replied, "Not at all," but added, "As I've said many times, the current tariff levels are not sustainable for either side. So it would not be surprising if both sides lower tariffs in a reciprocal manner." This suggests that both the U.S. and China should lower tariff rates at the same time.
With the Trump administration repeatedly sending moderate messages to China and effectively proposing mutual reductions of ultra-high tariffs, there is growing assessment that the U.S. and China are laying the groundwork for a tariff war truce and could return to the negotiating table. Initially, the U.S. set reciprocal tariffs on China at 50%, but after Beijing responded with retaliatory tariffs, the U.S. raised the reciprocal tariff rate to 125% through two rounds of countermeasures. Including the 20% fentanyl tariff, the total cumulative tariff is 145%.
The Chinese Foreign Ministry also stated, "If there is a fight, we will fight to the end, but the door to dialogue is wide open," indicating its willingness to engage in trade negotiations with the United States.
The WSJ noted, "Chinese policymakers see President Trump's Tuesday remarks as a signal that he is ready to abandon his (China) policy," and added, "The fact that both the U.S. and China have expressed openness to an agreement is a significant change from last month."
However, even if the U.S. and China lower tariff rates to the minimum level of 50% reported by the WSJ, the rate would still be extremely high, so the current near-complete halt in bilateral trade is unlikely to be resolved easily until a big deal is reached.
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