Trump Pledges 'Substantial' Cut In China Tariffs, But Refuses To Make It 'Zero:' 'If They Don't Make A Deal, We Will Set The Deal'

President Donald Trump has declared a significant reduction in the high tariffs placed on Chinese goods, although they will not be completely abolished.

What Happened: At a White House press conference on Tuesday, Trump addressed earlier remarks made by Treasury Secretary Scott Bessent, who had reportedly characterized the high tariffs as “unsustainable” and stated that he expects ‘de-scalation’ in U.S.-China tariffs.

Trump also assured that the final tariff rate with China would be “substantially” lower than the current 145%. “It won’t be that high, not going to be that high,” Trump said, reported The Associated Press. However, he emphasized, “It won’t be zero.”

Previously, Trump had enforced a 145% import tax on Chinese goods, which China countered with a 125% tariff on U.S. goods. Bessent had anticipated a “de-escalation” in the ongoing trade war between the two economic powerhouses.

Although Trump did not directly comment on whether he found the current situation with China to be unsustainable, he expressed optimism about the future of U.S.-China relations. He stated, “We’re doing fine with China,” and pledged to be “very nice” to Chinese President Xi Jinping.

Trump further stated that the U.S. is not going to ‘play hardball’ with China and that country would ‘have to’ make a deal with the U.S. “If they don’t make a deal, we will set the deal,” asserted Trump.

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Why It Matters: This announcement comes after a series of events that have escalated the US-China trade conflict. Earlier, the White House stated that Trump had called upon China to initiate negotiations, stating that the “ball is in China’s court” and emphasizing China’s reliance on the American consumer.

Shortly after, China’s Ministry of Commerce warned against the U.S. using tariffs to coerce other countries into restricting economic and trade cooperation with China. Notably, the U.S. also imposed up to 3,500% tariffs on most solar cells imported from Southeast Asia, a move that was seen as a counter to unfair trade practices by Chinese-owned companies.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.