Trump Floats 'Substantial' China Tariff Cuts in Deal

President Donald Trump said he plans to be "very nice" to China in any trade talks and that tariffs will drop if the two countries can reach a deal, a sign he may be backing down from his tough stance on Beijing amid market volatility.

- Bloomberg

WASHINGTON:

"It will come down substantially but it won't be zero," Trump said on Tuesday in Washington, following earlier comments from Treasury Secretary Scott Bessent that the standoff was unsustainable. Trump added that "we're going to be very nice and they're going to be very nice, and we'll see what happens."

Trump also said he didn't see the need "play hardball" with Chinese leader Xi Jinping and that during discussions he wouldn't raise Covid-19—an issue that is politically sensitive in Beijing. The White House recently launched a website that suggested the virus came from a lab in China, irking the nation's diplomats. Foreign Ministry spokesman Guo Jiakun said "the door for talks is wide open," at a regular press briefing in Beijing on Wednesday, reiterating that trade wars don't have any winners.

While Trump has repeatedly sought to get Xi on the phone, China wants the two sides to work out the contours of an agreement before the leaders speak. Chinese stocks traded in Hong Kong closed 2.1% higher on optimism that tensions with the US may soften, while the offshore yuan was last up 0.2% versus the dollar.

Trump's comments come as US stocks and Treasuries have been battered since he rolled out sweeping tariffs on April 2, later announcing a 90-day reprieve for most nations. The 145% duties Trump has placed on Chinese shipments this year remain in place, though he's made exceptions for computers and popular consumer electronics.