Washington, D.C. – President Donald Trump announced in a White House press conference that tariffs on Chinese goods will be reduced significantly, but will not drop to zero. This statement comes in response to comments made by Treasury Secretary Scott Bessent, who expressed concerns about the sustainability of high tariffs and predicted a de-escalation of the trade war between the United States and China.

Trump’s decision to impose import taxes of 145% on China has led to retaliatory tariffs of 125% on U.S. goods. The escalating trade tensions have had repercussions on the stock market, causing unease among investors who fear economic slowdown and increased inflation rates. Despite these concerns, Trump remains optimistic about reaching a favorable resolution with China.

The situation was further complicated by Bessent’s private remarks, where he described negotiations with China as a “slog” and deemed the current status quo unsustainable. This behind-the-scenes insight shed light on the challenges ahead in the trade negotiations between the two economic giants.

While the stock market reacted positively to news of a potential de-escalation, Trump refrained from confirming whether he shared Bessent’s view on the sustainability of the current approach towards China. Instead, Trump expressed a desire to maintain a positive relationship with Chinese President Xi Jinping and hinted at a future reduction in tariffs on Chinese imports.

The uncertainty surrounding trade relations with China has not deterred the Trump administration from pursuing trade talks with other countries, including Japan, India, South Korea, the European Union, Canada, and Mexico. Trump’s focus on reducing import taxes and addressing non-tariff barriers reflects his administration’s commitment to promoting U.S. exports on a global scale.

China, on the other hand, has warned other countries against reaching trade agreements that could undermine its interests. Despite these warnings, reports suggest that China is exerting pressure on third countries to enforce restrictions on U.S. sales, signaling a complex web of trade dynamics in the current global landscape.

Amid calls for the Federal Reserve to lower its interest rates, Trump has emphasized the importance of a strong economy and has hinted at potential changes in leadership within the Fed. These developments, coupled with ongoing trade negotiations, add a layer of complexity to the economic landscape and raise questions about the future of international trade relations.