Trump Backs Down Again

President Trump said Tuesday that the steep tariff rate currently imposed on China would be lowered significantly following expected negotiations with Chinese President Xi Jinping, expressing confidence that a trade deal would be reached.

“145 percent is very high. It won’t be that high, it’s not going to be that high … it won’t be anywhere near that high,” Trump told reporters from the Oval Office. “It will come down substantially, but it won’t be zero.”

The 145 percent rate remains in place solely for China after Trump rolled back the so-called “reciprocal” tariffs on other key trading partners, temporarily reducing those to 10 percent for a 90-day negotiation window.

Trump said his administration was positioning itself for meaningful talks with Beijing and was optimistic about the outcome, pointing to his personal rapport with Xi as a reason for hope.

“We’re going to be very nice. They’re going to be very nice, and we’ll see what happens,” he said. “But ultimately, they have to make a deal because otherwise they’re not going to be able to deal in the United States.”

He criticized China’s trade practices over the last two decades and argued that American policy under previous administrations allowed China to build its economy and military on the back of U.S. consumer spending.

“China was taking us for a ride, and it’s not going to happen. We’re going to be very good to China, have a great relationship with President Xi. But, they would make billions and billions and billions of dollars a year, and they would build their military out of the United States and what they made. So, that won’t happen,” Trump said. “But they’re going to do very well, and I think they’re going to be happy, and I think we’re going to live together very happily and ideally work together.”

Earlier in the day, the White House issued a statement saying it was “setting the stage for a deal with China” in an attempt to calm financial markets and ease investor anxiety about the escalating trade war.

Treasury Secretary Scott Bessent echoed that message during a closed-door meeting with investors in Washington, reportedly telling attendees that he anticipates a “de-escalation” of the current trade tensions. China has imposed retaliatory tariffs on U.S. goods, intensifying economic pressure on both sides.