Trump signals tax cuts for China, but not total removal

The statement was made during an event in the White House, where Trump showed a milder tone after weeks of tension and escalation of trade conflict, which had brought tariffs on Chinese products to over 145%.

“145% is too much. It won't be that high. It will sit significantly, but it will not be zero”, Trump said in a question-responsive session with reporters at the Oval Office.

His comments came in response to a previous statement by Treasury Secretary Scott Bessent, who at a conference on investments organised by JP Morgan Chase, had estimated that trade war had become unstable and that “effectively terminated trade” between the two largest economies in the world.

Bessent predicted a close de-progression and stressed that the goal is not the secession, but a rebalancing of trade relations between the two countries. These statements produced a significant increase in American stock exchanges, with all three main indexes affecting the highest levels of the day. Asian markets also reflected optimism, with the Hang Seng Index growing by 2.5%, Nikkei 225 by 2%, and Kospi by 1.5%.

Chinese escalation and responses

Trade fighting has seen a new wave of tariffs and revenge measures on both sides. The US has imposed record tariffs on Chinese imports, while China has raised tariffs for American goods to 125%, has placed more companies on the list of undesirable subjects and has imposed restrictions on export of critical minerals.

Beijing has also hit symbolic American sectors, such as the film and aviation industry. Hollywood movies in Chinese cinema have been restricted and two Boeing aircraft were returned to the U.S.

Personal Relations and Diplomatic Background

Despite tensions, Trump has repeatedly stressed his personal relationship with Chinese President Xi Jinping. “I have a very good relationship with Xi,” he said, adding that he hopes for a possible deal.

When asked whether the U.S. would follow a harsh stance to force China to negotiate, or whether it would be mentioned the Devud-19 pandemic in the discussion, Trump replied: “no, we would be very good. They'll be very good and we'll see what happens. ”

China, on the other hand, has made it clear that it is open to negotiations, but only if they develop on the basis of mutual respect and reciprocity. A source close to the Chinese government confirmed that Beijing has been ready for dialogue, but has felt unclear about proper communication channels from the American side.

In particular, harsh reactions have come after several comments by American officials, including Vice President JD Vance, who was criticised by China for insulting statements that provoked outrage in Chinese social networks. /Periscope/