President Donald Trump has suggested a potential shift in U.S. trade policy with China, signaling that the high tariffs on Chinese goods will “come down substantially,” although not to zero. His comments, made during a news event at the White House on Tuesday, marked a departure from the tough stance he has maintained for weeks, following retaliatory measures that pushed tariffs on Chinese imports above 145%.
Trump’s statement came after Treasury Secretary Scott Bessent remarked earlier that the tariffs have effectively created an embargo, hurting trade between the U.S. and China.
Bessent indicated that the trade war is unsustainable and expects a de-escalation soon, which gave a boost to U.S. stock markets.
Asian markets also saw gains, with Hong Kong, Japan, and South Korea all experiencing significant increases in stock prices.
China’s Foreign Ministry responded to Trump and Bessent’s remarks, urging the U.S. to engage in talks based on equality and respect rather than continuing pressure tactics.
A ministry spokesperson emphasized China’s willingness to negotiate, but also warned that it was prepared to continue fighting if necessary.
Trump’s softened tone quickly gained attention on Chinese social media, where the hashtag “Trump chickened out” trended with millions of views. The trade war between the two largest economies has disrupted global markets, with both sides imposing record tariffs. Despite these tensions, China has maintained a defiant stance, retaliating with tariffs, adding American companies to its export control list, and restricting U.S. goods.
Trump reiterated his hope that Chinese President Xi Jinping would initiate talks, promising to approach negotiations with kindness. He emphasized that a deal must be reached for China to continue engaging with the U.S., stressing the importance of cooperation for mutual benefit.
