Trump's Tariff Remarks
U.S. President Donald Trump has suggested a significant reduction in tariffs on Chinese goods, suggesting a possible reversal of the ongoing trade standoff between Washington and Beijing. Speaking at a White House press conference on Tuesday, Trump acknowledged the imposition of high tariffs but indicated that they would be cut "substantially"—but not entirely.
"Tariffs at 145% are very high, and they won't stay that way," Trump told a Q&A session that included the press. "They'll come down a long way, but it won't be zero."
Market Reaction and Bessent's Remarks
Trump's statement is made amid mounting pressure from financial markets and growing concern over long-term damage stemming from the tariff war. The tone shift follows remarks by Treasury Secretary Scott Bessent, who earlier on Tuesday had termed the high tariffs unsustainable. In his address to a private investment conference hosted by JP Morgan Chase, Bessent had termed the trade standoff as having in effect halted commerce between the world's two largest economies, according to china news today.
The objective is not total decoupling, but a recoupling of trade relationships, Bessent said to investors, a person briefed on the conversation said. That reassurance launched a rally on Wall Street, where all three major U.S. indexes touched their intraday highs after reports of Bessent's comments started making the rounds.
Asian Stock Market Response
Asian stocks also trailed behind. Hong Kong's Hang Seng Index went up 2.5%, Japan's Nikkei 225 went up 2%, and South Korea's Kospi went up 1.5%, reflecting hopes of a relaxation in tensions, reports china news today.
China's Response on Social Media
Trump's apparent weakening did not go unnoticed by China. On Weibo, China's top social media platform, the hashtag #Trump-chickened-out went viral on Wednesday, garnering over 110 million views. This has been one of the top trending subjects in china news today.
The Trade War and China's Countermeasures
The trade war, characterized by the two nations engaging in tit-for-tat tariffs, has rattled global markets, further disrupting supply chains and stoking recession fears. China has retaliated in a strong manner, imposing tariffs of up to 125% on US goods, cutting off crucial exports such as rare earth components, and taking aim at US businesses through tighter controls and increased regulatory scrutiny, reports china news today.
Beijing has also struck back symbolically, like repatriating two Boeing jets intended for Chinese carriers and reducing the number of Hollywood movies cleared for release in China.
Trump's Hopeful Tone for Future Negotiations
Besides the extreme measures, Trump was conciliatory in tone, claiming he still has a "very good relationship" with Chinese President Xi Jinping. Trump hoped Xi would eventually sit down with him for face-to-face negotiations, but repeated that the U.S. would not extend an olive branch.
"We're going to be very nice," Trump responded. "They'll be very nice, and we'll see what happens. But eventually, they have to make a deal. Otherwise, they won't be able to conduct business in the United States—and we'd like them involved."
He further stated, "I think we're going to live together very happily and hopefully work together. I think it's going to work out fine."
China's Conditions for Negotiations
In Beijing's eyes, the door of negotiation remains ajar—but only if done with respect and equity. China insists on consistency and reciprocity if talks are to resume, and that Trump's practice of avoiding official diplomatic channels complicates dialogue, says a source close to Chinese officials.
The source also referred to anti-China rhetoric by Trump's Cabinet officials as an issue, suggesting that Trump's failure to distance himself from such views undermines his public overtures to Xi.
Recent Controversies and Chinese Criticism
Chinese officials earlier this month condemned U.S. Vice President JD Vance for insulting comments regarding "Chinese peasants," which sparked outrage on Chinese social media. The incident has been widely covered in china news today.
Conclusion
This article has been updated with fresh developments and insights.