Trump says tariffs on Chinese goods will fall "significantly - but not to zero"

Donald Trump said during a press conference at the White House that high tariffs on Chinese goods "will come down significantly, but it won't be zero."

Trump's comments came in response to an earlier statement by Treasury Secretary Scott Besant on Tuesday, who said the high tariffs were unsustainable and that he expected a "de-escalation" of the trade war between the world's two largest economies, the Guardian reports.

Trump imposed 145% tariffs on Chinese imports, while China responded with 125% tariffs on American goods. He has imposed tariffs on goods from dozens of countries, causing stock markets to rumble and interest rates on US debt to rise as investors fear slowing economic growth and rising inflationary pressures.

The details of Besant's statements were confirmed by two people familiar with the contents, who insisted on anonymity.

"I'm saying China will be a tough opponent in the negotiations," Besant said, according to a transcript obtained by The Associated Press. "Neither side believes the status quo is sustainable," he added.

The S&P 500 index rose 2,5% after Bloomberg News first reported Besant's statements.

Trump acknowledged the stock market rally in comments to reporters after the ceremonial swearing-in of Paul Atkins as the new chairman of the Securities and Exchange Commission (SEC) on Tuesday.

However, he avoided confirming that he also believes the situation with China is untenable, as Besent said behind closed doors.

"We're good with China," Trump said.

Despite the high tariffs, Trump said he would be "very nice" to China and would not play rough with Chinese President Xi Jinping.

"We will live together very happily and cooperate ideally," Trump said.

The US president said the final tariff rate on Chinese goods would be "significantly" lower than the current 145%.

"It won't be that high, it won't stay that high," Trump said.

The Chinese government has yet to respond to the news, but has consistently criticized Trump's tariffs. On the Chinese social network Weibo, Trump's statements were among the most commented on under various hashtags, including "Trump admits defeat."

On Tuesday, the state-run English-language China Daily described the remarks as "a symbol of the populist protectionism of the MAGA agenda," calling them destabilizing for global trade. After retaliating against Trump's tariffs, China halted further increases when it said the 125% tariffs were already significantly stifling domestic demand for American products.

Trump's subsequent 90-day pause in imposing new global tariffs did not include China.

Donald Trump's administration has held talks with representatives from Japan, India, South Korea, the European Union, Canada and Mexico, among others.

Trump has not publicly indicated his intention to withdraw the basic tariff rate of 10%, although he has repeatedly stated that he wants other countries to reduce their tariffs and eliminate non-tariff barriers that, in his administration's opinion, hinder exports from the US.

China on Monday warned other countries not to enter into trade agreements with the United States that could negatively affect its interests.

"China firmly opposes any deal that is reached to the detriment of China's interests," the Chinese Ministry of Commerce said in a statement.

However, Korean media reported on Tuesday that Beijing is now pressuring third countries to implement China's bans on American goods. The Korea Economic Daily reported that some Korean companies have received letters from Chinese authorities warning of retaliation if they export products containing Chinese strategic minerals to US military suppliers.

White House spokeswoman Carolyn Levitt said the Donald Trump administration has received 18 proposals for trade agreements from other countries, adding: "Everybody wants to get a deal done."

Uncertainty over tariffs in financial markets has been further heightened by Trump's pressure on the Federal Reserve to cut its benchmark interest rate, with the statement that he could fire Fed Chairman Jerome Powell if he so desired.

Trump later said he wanted Powell to "be quick" in lowering interest rates and had no intention of removing him, although he had previously hinted otherwise.