‘We’re going to be very nice’: Trump hints at U-turn on China trade war after tariffs hit 145%

President Donald Trump has hinted at a possible change in his approach to the ongoing trade war with China. He mentioned that he might significantly lower the tariffs currently set at 145% on Chinese goods but clarified that they won’t be completely removed. This comment comes after weeks of rising tensions and retaliatory actions between the two countries.

According to The Guardian, Treasury Secretary Scott Bessent also spoke about the trade war earlier, calling it unsustainable and suggesting that the US and China need to rebalance their trade relationship instead of completely cutting ties. His comments helped boost the stock market, which reached its highest levels of the day after the news. Asian markets also saw some gains the next day.

In response, China’s Ministry of Foreign Affairs urged the US to stop using threats and coercion and to negotiate based on equality and mutual respect, per CNN. Guo Jiakun, a spokesperson for the ministry said, “claiming it wants to reach an agreement with China while constantly applying maximum pressure is not the right way to engage with China — and it simply won’t work.”

Trump may finally put an end to tariffs

On Chinese social media, a popular hashtag, “Trump chickened out,” gained millions of views. However, we’d be pretty happy to know there is relief at the end of the tunnel since many of the world’s economies count on these two major players.

The ongoing trade war has created global economic instability. High tariffs on both sides have led to market volatility, disrupted international supply chains, and raised fears of a global recession. The International Monetary Fund (IMF) has downgraded its US economic growth forecast, noting that the uncertainty from the tariffs is a significant factor. They also warned of a potential global slowdown due to increasing trade tensions.

China has retaliated with its own tariffs of 125% on US goods and has taken further measures against American companies. Trump’s strategy seems to involve waiting for Chinese President Xi Jinping to start talks, and he expressed a desire to be friendly during negotiations, stating he wouldn’t use aggressive tactics or mention the COVID-19 pandemic as a bargaining chip.

This approach contrasts with some tougher views held by people in his cabinet, and Trump’s lack of a public rejection of those views has been seen as implicit approval. Everyone is watching to see if Trump’s change in tone will bring about real progress or lead to more back-and-forth attacks.