Why it matters:
The development signals a potential easing of tensions in U.S.-China trade relations, which could have significant implications for global markets and economic stability.
The big picture:
Trump's announcement comes amid growing concerns about the negative economic impacts of high tariffs on American consumers and businesses. The current 145% tariff on certain Chinese imports has been a point of contention, and the Trump's acknowledgment of its unsustainability suggests a possible pivot in trade policy.
What he is saying:
Trump stated, "The 145% tariff is very high and it will not always stay that high. It will be significantly reduced."
He also noted that the negative economic effects of increased tariffs will be felt in the U.S. for some time, describing the recent market uptrend as satisfactory but temporary.
Key points:
- Last week, Trump indicated that the current 145% tariff might be reduced, and further increases are unlikely.
- On April 2, Trump announced tariffs on imports from 185 countries and territories.
- The global tariffs, starting with a base rate of 10%, were implemented on April 5, with separate tariffs for certain countries, including China, taking effect on April 9.
- White House confirmed that while the base 10% tariff remains in place, negotiations with trade partners regarding separate tariffs will occur during this period.
- The suspension of certain tariffs coincided with an increase in tariffs on Chinese goods to 125%.
- With an initial 20% tariff on Canada, China, and Mexico, the total tariffs imposed on China reached 145%.
- Currently, China's retaliatory tariffs against the U.S. remain at 125%.
Go deeper:
Trump’s Total Tariffs on China Hit 145% Amid Market Whiplash
U.K. Automakers Halt Exports to U.S. Amid New Tariffs
Zohre Khazaee
