The Trump administration is weighing a substantial rollback of tariffs on Chinese imports, in what could mark a first step in U.S. trade policy with China, the world’s second-largest economy.
Earlier this Wednesday, a White House official told CNBC China tariff changes wouldn’t be unilateral without providing further details.
U.S. officials are discussing slashing duties on some products by between “50% and around 65%”, people familiar with the deliberations told WSJ, though no final decision has been made. The move would represent a sharp departure from the current tariff regime, which includes steep levies that can reach 245% on some Chinese goods.
Treasury Secretary Scott Bessent said on Wednesday “America first does not mean America alone” before urging “deeper collaboration and mutual respect among trade partners.”
U.S.-listed Chinese stocks rallied on the news with Alibaba jumping 5%, Pinduoduo 5.2%, and Baidu 4%. Chinese carmakers Nio, XPeng, Zeekr, and Li Auto rose between 3% and 8% in Wednesday’s early session.
The Trump administration is also exploring a two-tiered approach that would differentiate between strategic and non-strategic imports. Under this framework, items not viewed as a national security risk could face a 35% tariff, while goods classified as critical to U.S. interests would be subject to at least 100% duties, according to the report.
Trump, speaking Tuesday, confirmed he is open to easing some of the China-related tariffs he reintroduced, including the headline 145% rate. “But it won’t be zero,” he said, hinting at selective reductions.
While new tariffs have been paused for 90 days as of April 9 to allow time for negotiations with key trading partners, the 25% levy on auto imports and parts remains in place.
Tesla shares, which jumped 7% at the open following its quarterly earnings release, pared gains to trade 3% higher at $245 as of 10 AM Eastern time.
