White House weighs major cut in China tariffs to ease trade war tensions: Report

The US administration is weighing a significant reduction in tariffs on Chinese imports, potentially cutting them by more than half, in a move aimed at de-escalating the ongoing trade standoff with Beijing, the Wall Street Journal reported, quoting sources.

A senior White House official said tariffs could be lowered to around 50–65%, down from the current levels of up to 145%. The administration is also evaluating a tiered structure — similar to a House proposal from last year—with 35% tariffs on non-strategic goods and 100% or more on items deemed critical to U.S. national security, phased in over five years.

President Trump, speaking Tuesday, confirmed he was open to reducing the tariffs imposed during his second term.

Speaking to reporters at the Oval Office, Trump said, “I am not going to say I am going to play hardball with China, no. We’re going to be very nice, they’re going to be very nice and we will see what happens. Ultimately they will have to make a deal otherwise they are not going to be able to deal in the US. So, we want them involved but they will have to make a deal."

He added: “145 per cent is very high and it won’t be that high. It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.” 

“But it won’t be zero,” he said. The shift in tone was welcomed by investors, following weeks of market volatility triggered by escalating U.S.-China tensions.

China responded on Wednesday, signaling openness to renewed trade talks but warned it would not negotiate under continued threats. Trump’s remarks were interpreted in Chinese policymaking circles as a potential softening of his stance.

The latest developments mark a departure from the hardline exchanges that defined the past month, offering a glimmer of hope that the world’s two largest economies could return to the negotiating table.