Tariff Tone Softens

President Donald Trump expressed that he was willing to substantially reduce tariffs on Chinese goods earlier this week, signaling a shift following recent tension and reciprocal tariff increases between the world’s two biggest economies.

While discussions remain open, an unnamed White House official shared tariffs on Chinese goods are likely to come down to between 50% and 65%. Officials are also considering a tiered approach that phases in different levies over five years. Chinese officials indicated they were open to trade talks yesterday, though not under continued threats from the US. Earlier this month, the US raised tariffs on Chinese goods to 145%, prompting China to respond with a 125% retaliatory tariff and additional measures. 

Trump’s latest remarks come after a Monday meeting with representatives from US retail giants like Walmart and Target. Recent tariff escalations prompted anxieties among industry leaders, investors, and Americans in general while also causing upsets in global markets and raising fears of recession. 

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