According to the New York Post, the United States may be considering a significant rollback in tariffs for Chinese imports. Plans are underway to reduce the current 145% tax to 50%.
This potential change in strategy could signal a major shift for the Trump Administration’s approach to trade, as it is expected that high-level talks between US officials and Chinese officials will resume next week in Switzerland.
Sources with knowledge of the issue told This post US officials were actively discussing the reduction in the high tariffs on Chinese products to between 50-54%.
It is hoped that this will ease tensions in trade and pave the way for a wider agreement between these two superpowers.
New York Post reports that the U.S. plans to reduce Chinese tariffs by 50%. The point at which large companies can absorb tariffs through price increases and job cuts (to protect their profit margins), while most small business cannot, is 50%. This is a better situation
Tariffs on other South- and Southeast-Asian countries’ imports could also be reduced to 25%. This is seen as a part of the recalibrating of American trade policies in the Indo-Pacific.
This post quoted a source as saying, “They will be bringing the price down to 50 percent while negotiations continue.”
It is a response to President Donald Trump’s comments made in the Oval Office where he announced a US-UK deal, and said that tariffs on China “can only go down.”
Trump added optimism to reporters about the improvement of trade relations between Beijing and Trump.
This expected adjustment is in line with the comments made by Treasury Secretary Scott Bessent earlier this week at the Milken Institute Global Conference, when he said that current tariffs of triple-digits are “not sustainable.”
After a White House gathering in April, the administration’s discussions gained momentum. The meeting was attended by top US retailers including Doug McMillon of Walmart, Brian Cornell of Target and Ted Decker of Home Depot. They described it as “constructive.”
Retailers have already begun preparing themselves for potential changes.
Jay Foreman is the CEO of Basic Fun, which makes Care Bears and Tonka Trucks. He also owns My Little Pony. This Post reports that vendors are being asked to set prices based on different tariffs of 10%-54%.
Foreman stated that “the signals are coming in to say the dam is going to break this week or the next.”
Market watchers and insiders in the industry remain hopeful that an agreement is on the way. Although White House spokesperson Kush Deai said that the official decisions regarding tariffs will be made by the President, and that speculation was dismissed, they are still optimistic.
Source: “People realize that there will be deals made.”
This could impact global trade, inflation, and consumer prices — particularly in retail and manufacturing, which rely heavily upon imports from China and Southeast Asia.
Report may change as new information becomes available.
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