“It won’t be zero, but it won’t be 145%” — Trump on China Tariffs

TDT | Manama

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U.S. President Donald Trump has signaled a possible shift in his administration’s hardline trade stance toward China, suggesting that the steep tariffs imposed during the ongoing trade war could be significantly reduced.

Speaking at a White House news conference on Tuesday, Trump acknowledged that the current tariff rates on Chinese imports—reportedly soaring above 145%—are unsustainable. “145% is very high, and it won’t be that high,” he said. “It’ll come down substantially. But it won’t be zero.”

His comments mark a notable softening in tone following months of aggressive rhetoric and tit-for-tat tariff escalations that rattled global markets and disrupted U.S.-China trade flows.

The remarks came in response to a question about U.S. Treasury Secretary Scott Bessent’s statements earlier that day at a private JP Morgan Chase investment conference. Bessent had reportedly told investors that the U.S.-China trade dispute is nearing a turning point and that the objective is not full decoupling but rather a “rebalancing” of trade relations.

“The trade war in its current form is unsustainable,” Bessent reportedly said, a statement that was later confirmed by sources close to the matter.

Markets responded swiftly to the perceived shift in stance. All three major U.S. stock indexes surged to session highs following Bessent’s remarks, extending gains through Trump’s press briefing. In Asia, major indices followed suit on Wednesday—Hong Kong’s Hang Seng jumped 2.5%, Japan’s Nikkei 225 rose 2%, and South Korea’s Kospi gained 1.5%.

In China, Trump’s pivot became a viral talking point. The hashtag “Trump chickened out” trended on Weibo, the country’s largest social media platform, amassing over 110 million views.

While the White House has not announced any formal policy changes, Trump’s remarks suggest that the administration may be preparing for a more measured approach to trade negotiations with Beijing. Analysts say this could pave the way for renewed talks and potential tariff rollbacks in the coming months.