According to an unnamed source, the administration of US President Donald Trump is considering lowering US tariffs on Chinese goods in the course of discussions with Beijing.
According to a report released on Wednesday, Reuters reported that no unilateral decisions would be made.
The White House is considering lowering its tariffs on Chinese imports in a bid to de-escalate tensions, according to a report from the Wall Street Journal (WSJ). According to the paper, citing a White House official, China’s tariffs could drop from their current level of 145 percent to between 50 and 65 percent.
Trump stated to reporters on Wednesday that “we will have a fair deal with China,” but he did not go into specifics about the WSJ report. His comments came in response to his reassurances that a tariff reduction deal was possible, which he made on Tuesday.
Scott Bessent, the US Treasury Secretary, also declined to comment on the WSJ story, but said he wouldn’t be surprised if tariffs dropped. Bessent said both nations don’t agree with the current rates, but he is unsure when any negotiations might begin. Before trade talks can begin, Bessent added that there must be a de-escalation.
Bessent said, “I believe both sides are awaiting communication.”
According to sources, separate discussions between the two nations regarding tackling the fentanyl epidemic have not yet produced any results.
Any tariff reports were “pure speculation,” according to White House spokesman Kush Desai, unless they were made directly from Trump.
Still in the high
The Wall Street Journal report’s recommendations for tariff levels would still likely still be high enough to deter significant trade between the world’s two largest economies. On Wednesday, German shipper Hapag-Lloyd announced that 30% of its US-bound shipments from China had been canceled.
China has retaliated by imposing 125 percent tariffs on US imports, among other measures.
Following the release, US stocks increased their gains in the first session. After Trump rebuffed threats to fire the head of the US Federal Reserve and claimed a deal with China was possible, the market had surged sharply higher. In mid-morning trading, the benchmark S&, P 500 index, increased by roughly 3 percent.
According to The WSJ, discussions are still ongoing and have several options open up. A three-tiered approach, similar to the one suggested by the House of Representatives Committee on China late last year, would be possible: levies of at least 100% for items deemed to be strategic in US interests, and at least 35 percent for items that the US considers not to be a threat to national security. Those taxes were proposed in the bill’s proposal to gradually increase over five years.
Trump has also imposed a blanket 10% tariff on all other US imports, as well as higher duties on steel, aluminum, and cars. He has proposed additional industry-specific levies on semiconductors and pharmaceuticals, as well as suspending targeted tariffs on dozens of other nations until July 9. Financial markets have been stung by that, which has heightened worries of a global recession.
Source: Aljazeera
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