White House Weighs Cutting China Tariffs by Up to 65%

• The U.S. is considering reducing tariffs on Chinese imports to between 50% and 65% to de-escalate trade tensions, following a high of 145% amid a series of retaliatory tariff hikes with Beijing.
• The proposed tariff cut aims to stabilize markets and ease economic pressures, but success depends on China’s response and navigating complex geopolitical dynamics.

The U.S. government is exploring a reduction in tariffs on Chinese imports, potentially lowering them to between 50% and 65%, according to a White House official cited by the Wall Street Journal on Wednesday. This move aims to ease escalating trade tensions with Beijing, which have disrupted global markets and supply chains. The proposed cut follows a series of tit-for-tat tariff hikes, with U.S. levies on Chinese goods reaching 145% and China retaliating with 125% tariffs on American imports. These measures, intensified under the Trump administration, were designed to address trade imbalances and protect U.S. industries but have raised concerns about inflation and economic slowdown.

The tariff saga began with earlier duties, including a 20% fentanyl-related tariff and a 34% levy, culminating in a 104% rate before the latest 125% increase. China’s countermeasures, including restrictions on critical minerals and U.S. businesses, have deepened the economic rift. The potential tariff reduction signals a shift toward de-escalation, reflecting pressures from market volatility and global calls for trade stability. Goldman Sachs recently cut China’s 2025 GDP forecast to 4%, citing trade disruptions, while U.S. consumer prices face risks from prolonged high tariffs. The White House’s consideration of lower tariffs aligns with efforts to stabilize bilateral relations, though negotiations remain uncertain amid Beijing’s firm stance against U.S. pressure. This development could ease costs for U.S. consumers and businesses, but its success hinges on reciprocal actions from China and broader geopolitical dynamics.

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