President Donald Trump indicated on April 22, 2025, that the steep 145 percent tariffs on Chinese imports will “come down substantially, but … won’t be zero,” signaling a potential softening of his hard-line trade stance with China. Treasury Secretary Scott Bessent had earlier described the tariff standoff as “unsustainable” and predicted a near-term de-escalation. Global markets rallied on the prospect of lower tariffs: U.S. indexes climbed more than 2 percent, and major Asian bourses, including Hong Kong’s Hang Seng, Japan’s Nikkei 225, and South Korea’s Kospi, rose between 1.5 and 2.4 percent. Beijing responded by urging Washington to end “threats and coercion” and engage on equal terms. Amid mutual warnings and tit-for-tat duties, the U.S. at 145 percent, China at 125 percent, both sides couch their positions as unwilling to yield, even as the door remains open for negotiations.
Lead
Who: U.S. President Donald Trump and Treasury Secretary Scott Bessent
What: Trump signaled a substantial reduction—but not elimination—of tariffs on Chinese goods, echoing Bessent’s view that the current tariff impasse is unsustainable.
When: Remarks made April 22, 2025; markets reacted on April 23, 2025.
Where: White House Oval Office; global stock markets.
Why: To alleviate market volatility and rebalance trade relations without entirely rescinding tariffs.
Trump’s Rhetorical Shift
President Trump told reporters in the Oval Office that the current 145 percent levy on Chinese imports “is very high and it won’t be that high … it’ll come down substantially. But it won’t be zero.” He added that China “has to make a deal … otherwise they’re not going to be able to deal in the United States.”
Background
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On April 2, Trump unveiled “Liberation Day” tariffs, raising duties on China to 145 percent.
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China retaliated with 125 percent tariffs on U.S. goods and other measures, including controls on rare-earth exports.
Market Response
Treasury Secretary Scott Bessent had warned at a private JPMorgan conference that the mutual embargo mentality is “unsustainable” and forecast de-escalation “very shortly.” His comments sparked a Wall Street rally, with the S&P 500 and Nasdaq Composite jumping about 2.5 percent.
In Asia on April 23:
- Hang Seng Index rose 2.4 percent.
- Nikkei 225 climbed about 1.9 percent.
- Kospi gained 1.5 percent.
The U.S. dollar initially surged, then steadied after Trump also backed down from firing Fed Chair Jerome Powell.
Chinese Reaction
China’s Foreign Ministry spokesperson Guo Jiakun said Washington must “stop its threats and coercion” if it genuinely wants a deal, warning that pressure tactics “simply won’t work.” He reiterated that China “does not want to fight, but … if it’s to fight, we’ll fight till the end. If it’s to talk, our door is wide open.”
What’s Next
- Negotiation framework: Bessent emphasized that talks have yet to begin formally and will likely be arduous.
- U.S. leverage: Trump plans to use tariff relief as a bargaining chip, insisting China must agree to terms or face sustained duties.
- China’s stance: Beijing seeks equal-footing dialogue, has rallied other trade partners to resist U.S. pressure.
Analysts caution that until a concrete negotiation process is announced, market volatility is likely to persist.
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