According to US leader Donald Trump, tariffs on Chinese goods will soon be significantly reduced, but they will not be zero. What is important to understand is that the current figure is 145%.
Points of attention
- China has retaliated by hurting key American industries, such as limiting Hollywood films and returning Boeing planes.
- The announcement signals a shift in US-China trade relations and may have significant impacts on global trade dynamics.
Trump announced a reduction in tariffs against China
The head of the White House has publicly acknowledged the fact that 145% is a very high figure, so he intends to lower it.
It won't be anywhere near as high. It will go down significantly. But it won't be zero.
Donald Trump
President of the United States
What is important to understand is that tariffs of 145% de facto imposed an embargo on countries against each other.
According to US Treasury Secretary Scott Bessant, official Washington has already realized that a trade war with China is unsustainable.
Moreover, the American minister added that he expects de-escalation in the near future.
Bessent told investors that the main goal of the trade war with China is to rebalance trade, not stop it.
China, in turn, has taken steps to hurt key American industries, limiting the number of Hollywood films shown in the country and returning to the United States at least two Boeing planes intended for use by Chinese airlines.
