Trump softens stance, lowers expectations on China tariffs
- President Trump softened his tone regarding tariffs on Chinese goods, suggesting they would not be as high as previously announced.
- Treasury Secretary Scott Bessent indicated the current high tariff rates are unsustainable and detrimental to trade.
- Investors reacted positively, with the stock market rallying on hopes for reduced tensions and increased trade negotiations.
In the United States on April 22, 2025, President Donald Trump indicated a shift in his approach to tariffs on Chinese imports. During remarks at the Oval Office, he suggested that the final tariffs would not reach the previously proposed 145%. This shift followed Treasury Secretary Scott Bessent's comments about the unsustainable nature of the high tariffs and their impact on trade, describing the situation as equivalent to a trade embargo. Bessent expressed optimism that trade tensions might ease in the near future, although full agreements might take years, implying a need for negotiations to seek a resolution. These developments led to a rally in the stock market as investors reacted favorably to the possibility of de-escalation. Stocks saw significant gains, with the Dow Jones Industrial Average rising over 1,000 points. The U.S. futures market and Asian markets also experienced upsurgence in response to these statements. Analysts believe that a more conciliatory approach from Trump towards China could stabilize market fears and reduce risks of economic slowdown caused by prolonged trade disputes. As negotiations between the U.S. and China progress, the shifting tariff strategy reflects Trump's larger aim of securing favorable outcomes without causing further market disruptions, projecting a commitment to finding common ground rather than maintaining a hardline stance that stifled trade.