President Donald Trump signaled a possible shift in his trade war with China on Tuesday, suggesting that tariffs on Chinese goods—some of which now exceed 145%—could be lowered. Speaking from the Oval Office, Trump said the rates would “come down substantially,” though not all the way to zero. It was a noticeable change in tone after months of hardline policies and rhetoric that have added strain to the already tense relationship between the U.S. and China.
Trump’s remarks came shortly after Treasury Secretary Scott Bessent privately told investors that the current trade policy had effectively become an embargo, reported CNN. A source familiar with his comments told the news channel that Bessent called the situation “unsustainable” and hinted that the administration was seeking a rebalancing of economic ties with China—not a full separation.
The markets reacted quickly. All three major U.S. stock indexes jumped to their highest levels of the day following Bessent’s comments, and the positive momentum spread to Asia. Hong Kong’s Hang Seng index rose more than 2%, and gains followed in Tokyo and Seoul as well.
But while investors cheered, Chinese officials were not impressed. China’s Foreign Ministry dismissed Trump’s comments as superficial and insisted that real talks would require the U.S. to back away from its pressure tactics. “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,” Guo Jiakun, a spokesperson for the ministry, told reporters at a regular news conference.
“China’s position on the tariff war initiated by the United States is very clear: We do not want to fight, but we are not afraid to fight. If it’s to fight, we’ll fight till the end. If it’s to talk, our door is wide open,” he added.
Despite Trump’s claim that he maintains a good relationship with Chinese President Xi Jinping, the broader conflict is far from over. China has hit back with its own tariffs—some as high as 125%—and has limited U.S. imports like Boeing planes and Hollywood films.
