Tariff War: Trump Administration Could Drop Tariffs On China To 5065% Amid Pending Talks With Beijing, Says Report

(MENAFN- Live Mint) The Trump administration is considering a significant reduction in tariffs on Chinese imports, potentially bringing current rates down from 145% to a range between 50% and 65%, a news report stated on Wednesday (April 23) citing a source familiar with the matter.

The move is contingent on pending trade negotiations with Beijing.

The development follows a report by The Wall Street Journal, which cited people familiar with the matter, saying they are exploring tariff reductions as part of efforts to de-escalate tensions between the United States and China .

The Journal noted:“China tariffs could come down to between 50% and 65%,” citing a White House official.

Trump: Tariffs 'won't be that high'

Speaking on Tuesday, President Trump signaled optimism about reaching a deal with China that could result in substantially lower import duties.“It won't be that high,” Trump said when asked about the 145% tariff rate .“It won't be anywhere near that. If they don't make a deal, we'll set the deal.”

Tiered approach under consideration

According to the Journal, the Trump administratio is also weighing a tiered tariff system, similar to a proposal floated by the House China committee in 2023. This approach would apply:

• 35% tariffs on goods not considered a threat to US national security
• 100%+ tariffs on strategic items, such as semiconductors and key raw materials

This phased model would roll out over five years and aims to balance economic competitiveness with national security.

Although deliberations are ongoing, insiders caution that no formal decision has been made, and several options remain under review. The discussions reflect the administration's attempt to strike a new balance.

Also Read | Tariff optimism fuels Wall St gains as Trump eases stance on Powell

MENAFN23042025007365015876ID1109465103