US President Donald Trump has signaled a potential U-turn on his trade war with China, saying the high tariffs on Chinese goods will “come down substantially, but it won’t be zero.” Trump’s remarks, made at a White House news event Tuesday, appear to mark a rhetorical climbdown after weeks of tough posturing and tit-for-tat retaliation that sent tariffs on China beyond a staggering 145%. “145% is very high and it won’t be that high,” Trump said in a question-and-answer session with reporters in the Oval Office. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.” Trump made the comments when asked about Treasury Secretary Scott Bessent’s remarks earlier in the day that the high tariff rates between the United States and China have effectively embargoed trade between the economies. Bessent said at a private investment conference hosted by JP Morgan Chase that the trade war with China is unsustainable and he expects the battle to de-escalate in the very near future, a person familiar with the matter confirmed to CNN. Instead of a hard break or complete decoupling between the United States and China, Bessent told investors that the goal is to have a rebalancing of trade, the source told CNN. The world’s two largest economies have slapped record tariffs on each other in a swiftly escalating fight that has roiled global markets, disrupted supply chains and stoked recession fears. So far, China has struck a defiant tone and refused to back down. Instead, it retaliated by raising tariffs on US goods to 125%, adding more American companies on its export control list and unreliable entity list, and restricting the export of critical minerals used in everything from iPhones to missile systems. Beijing also moved to exert pain on key US industries, restricting the number of Hollywood movies shown in the country and returning at least two Boeing jets intended for use by Chinese airlines to the US. Through it all, Trump has insisted that he has a “very good relationship” with Chinese leader Xi Jinping while waiting for the Chinese leader to reach out – and has told his team that the US will not make the first move, CNN reported earlier. But rather than calling Trump to negotiate tariffs, Xi has instead launch a diplomatic charm offensive with other trade partners to push back against US efforts to use the tariff war to isolate China economically. On Tuesday, Trump again expressed his hope for Xi to come to the negotiation table – and promised to “be very nice.” Asked if the US was going to play hardball with China or Xi in order to make a deal, or if officials would mention the Covid-19 pandemic, Trump quickly responded: “No.” “No, no, we’re going to be very nice. They’re going to be very nice, and we’ll see what happens,” the president added. “But ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States, and we want them involved.” “I think we’re going to live together very happily and ideally work together, so I think it’s going to work out very well,” he said.
Trump says China tariffs will ‘come down substantially,’ hinting at potential U-turn
TruthLens AI Suggested Headline:
"Trump Indicates Potential Reduction in China Tariffs Amid Trade War Tensions"
CNN
7.0
TruthLens AI Summary
US President Donald Trump has recently indicated a significant shift in his approach to trade relations with China, suggesting that the high tariffs currently imposed on Chinese goods will be reduced substantially, although he clarified that they would not be eliminated entirely. During a press event at the White House, Trump stated, '145% is very high and it won’t be that high,' indicating a departure from the aggressive stance that has characterized the trade war. His comments came in response to Treasury Secretary Scott Bessent's earlier remarks, which highlighted the unsustainable nature of the current tariff rates and called for a de-escalation of the trade conflict. Bessent's statements, made at a JP Morgan Chase investment conference, underscored the need for a rebalancing of trade rather than a complete separation between the two economic powerhouses. This ongoing trade war has resulted in record tariffs, disrupting supply chains and heightening global recession fears, with China responding defiantly by increasing tariffs on US products and implementing other retaliatory measures.
In the midst of this escalating situation, Trump has maintained that he enjoys a positive relationship with Chinese President Xi Jinping, expressing hope that Xi will eventually engage in negotiations. Trump emphasized the importance of diplomacy, stating, 'We’re going to be very nice,' and indicated that the US will not adopt a hardball approach in discussions, particularly regarding sensitive topics like the COVID-19 pandemic. Instead, he expressed optimism about future cooperation, stating, 'I think we’re going to live together very happily and ideally work together.' This perspective comes as China has sought to strengthen ties with other trading partners, countering US efforts to isolate it economically. Despite the complexities of the current trade landscape, Trump's administration seems to be exploring avenues for potential dialogue, reflecting a possible turning point in US-China relations as both countries navigate the challenges posed by the trade war.
TruthLens AI Analysis
The article reveals a significant shift in the tone of U.S. President Donald Trump regarding trade relations with China. His recent comments about potential reductions in tariffs indicate a potential easing of tensions that have characterized the trade war. The implications of these remarks extend beyond mere economic policy and touch on broader geopolitical dynamics.
Potential Goals Behind the Article
The remarks from Trump could be aimed at calming markets that have been volatile due to ongoing trade disputes. By suggesting that tariffs will decrease, the intention may be to instill confidence among investors and businesses that have been affected by the high tariffs. This could also serve to reframe the narrative around the trade war, portraying it as a more manageable issue rather than an intractable conflict.
Public Perception and Messaging
The article seeks to create a perception that Trump is open to compromise, contrasting the previous rhetoric of aggression. By emphasizing that tariffs will not be reduced to zero, it also suggests a continued hardline stance, albeit with a willingness to negotiate. This dual messaging could resonate with both supporters who favor a tough approach to China and those who are concerned about economic repercussions.
Omissions and Underlying Issues
While the article highlights Trump's comments, it may downplay the ongoing and unresolved issues stemming from the trade war, such as the retaliatory tariffs imposed by China and the broader implications for global supply chains. There is a risk that the focus on Trump's shift could obscure the complexities of the U.S.-China relationship, including the long-term strategies both nations may employ.
Manipulative Aspects
The article has a moderate level of manipulativeness, primarily through its framing of Trump's comments. By presenting his statements in a positive light while minimizing the consequences of the tariffs, it may lead readers to adopt an overly optimistic view of the situation. The language used, such as "come down substantially," could be interpreted as an attempt to downplay the seriousness of the trade conflict.
Comparative Context
When compared to other reports on the trade war, this article seems to align with a trend of media narratives that oscillate between portraying the conflict as dire and suggesting potential resolutions. There may be a strategic intent to balance perspectives, especially in the face of fluctuating public sentiment regarding economic stability.
Impact on Markets and Industries
This news could have immediate effects on financial markets, particularly on sectors reliant on trade with China, such as agriculture, technology, and manufacturing. Stocks of companies affected by tariffs may experience fluctuations based on investor interpretations of Trump's comments, impacting market indexes overall.
Geopolitical Relevance
The trade relationship between the U.S. and China holds significant sway over global economic conditions. A perceived thaw in relations could influence other nations' trade policies and economic strategies, particularly those closely tied to either economy.
AI Influence in Writing
It’s possible that AI tools were involved in drafting or editing this article, especially in structuring the narrative to align with common journalistic standards. The use of AI could have influenced the tone to be more conciliatory or optimistic, reflecting a specific agenda.
In conclusion, while the article presents a potentially positive shift in U.S.-China trade relations, it also carries undertones that may not fully capture the complexities of the situation. The optimism surrounding tariff reductions must be weighed against ongoing tensions and retaliatory measures. Overall, the article maintains a moderate degree of reliability but should be viewed critically in the context of ongoing developments in international trade.