In a surprising change of tone, US President Donald Trump has hinted at a possible reduction in tariffs on Chinese goods. Speaking at a White House event, Trump said that although the current 145 percent tariff level is “very high,” it will “come down substantially” — though not to zero.
Signs of De-Escalation in the Trade War
Trump’s comments followed remarks from Treasury Secretary Scott Bessent, who described the trade war with China as unsustainable. Speaking at a private investment event, Bessent indicated that the United States seeks a trade rebalancing, not a complete decoupling. This news lifted investor sentiment, pushing major US indexes to their highest points of the day.
Asian markets also reacted positively, with Hong Kong’s Hang Seng gaining over 2 percent, and indices in Japan and South Korea posting strong finishes.
China Calls for Mutual Respect
In response, China’s Foreign Ministry urged the United States to end threats and instead pursue talks based on “equality, mutual respect, and reciprocity.” A ministry spokesperson reiterated that China is not afraid to fight but remains open to negotiations.
Online, Chinese netizens reacted strongly. The hashtag “Trump chickened out” went viral on Weibo, amassing over 150 million views.
Behind the Scenes: Diplomacy and Discomfort
Trump expressed optimism for future talks with Chinese President Xi Jinping, saying both sides would be “very nice” and could work together. However, diplomatic channels remain unclear, with China reportedly unsure who leads negotiations on the US side.
Meanwhile, Beijing continues to retaliate with measures targeting American industries, from raising tariffs to restricting Hollywood movies and key mineral exports.
Looking Ahead
Trump’s remarks suggest a possible thaw in relations, but experts caution that the situation remains fluid. With global markets watching closely, any movement — positive or negative — could ripple across economies worldwide.
While the tone may have softened, the future of US-China trade relations still hinges on whether both nations can genuinely move from confrontation to cooperation.
