Trump signals possible tariff reduction on China amid economic pressure, trade war fallout
PTC Web Desk: US President Donald Trump has indicated a potential softening of his hardline tariff stance against China, suggesting that the current import tax levels are excessively high and have effectively halted trade between the world's two largest economies.
In an interview on NBC, Trump acknowledged that the tariffs—once a cornerstone of his “America First” trade policy—may now be counterproductive. “At any time, I can reduce the taxes on China,” he said, adding, “because if we don’t, it’s impossible to trade with them—and they do want to trade.” His comments come amid growing economic strain in China, with factory activity reportedly at its lowest level since 2023 and a significant drop in export orders.
Trump’s administration had progressively increased tariffs on Chinese goods, culminating in a staggering 145% rate by April 20. China responded with counter-tariffs of up to 125% on US products. Despite recognising the impact of these tariffs, Trump made it clear that he would not be the one to initiate a dialogue. When asked whether he would consider lifting the tariffs to reopen negotiations, Trump replied, “Why would I do that?” He stressed that any future trade deal must be equitable, stating that discussions would only happen if the terms were fair and balanced.
China, on the other hand, has shown recent signs of openness to resuming trade talks. For the first time in months, Beijing indicated its willingness to explore the possibility of a new trade agreement with the United States. A spokesperson from China’s Ministry of Commerce confirmed that the country is considering Washington’s trade negotiation offer, but emphasised that talks would only proceed if the US removes the unilaterally imposed tariffs.
The ongoing trade war has inflicted damage on both economies. In the United States, consumers and businesses have faced rising costs for essential goods ranging from manufacturing tools to consumer products like clothing and toys. The financial markets have also felt the pressure of prolonged uncertainty. Meanwhile, China’s manufacturing sector is facing its steepest decline since the post-pandemic recovery, with rising unemployment and faltering export numbers further exacerbating the economic slowdown. According to a Bloomberg report, the slump in Chinese factory output and export orders is the worst since December 2022, echoing the economic disruption experienced during the Shanghai lockdown of April 2022.
- With inputs from agencies
