Trump is considering slashing his tariffs on China

The Trump administration is considering slashing its steep tariffs on Chinese imports—in some cases by more than half—in a bid to de-escalate tensions with Beijing that have roiled global trade and investment, according to people familiar with the matter.

President Donald Trump has not made any final decisions yet, and it should be noted that discussions remain fluid, and several options are still on the table. But according to a White House official, the US’ tariffs on China could come down from their current level of 145% to between 50% and 65%.

“We are going to have a fair deal with China,” Trump told reporters on Wednesday. Trump’s remarks followed optimistic comments he made on Tuesday that a deal to lower tariffs was possible.

White House spokesperson Kush Desai said any reports on tariffs were “pure speculation” unless they come directly from Trump. The tariff levels would likely still be high enough to deter a significant chunk of trade between the world’s two largest economies.

Treasury Secretary Scott Bessent said both countries see the current rates as unsustainable, but said he does not know when any negotiations might start. Separate talks between the two countries over tackling the fentanyl epidemic have not yielded results so far.

In addition to the steep tariffs on China, Trump has also imposed a blanket 10% tariff on all other U.S. imports and higher duties on steel, aluminum and autos. He has suspended targeted tariffs on dozens of other countries until July 9 and floated additional industry-specific levies on pharmaceuticals and semiconductors. That has roiled financial markets and raised fears of recession.

The International Monetary Fund said Wednesday the tariffs will slow growth and push debt higher across the globe. It still remains to be seen if Mr Trump is sticking to a long term strategy, or is reacting to the negative responses to his tariffs.