In Washington, President Trump stated on Wednesday that he will not reduce tariffs on Chinese goods by 145% amid ongoing trade negotiations. Treasury Secretary Scott Bescent is preparing for discussions with a delegation from Beijing this weekend.
A journalist asked Trump during a press session in the Oval Office if reducing tariffs could facilitate meaningful negotiations with China. Trump’s response was a straightforward “No.” This came despite his earlier comments from Switzerland, where he noted ongoing discussions with the Chinese deputy prime minister and expressed hopes for decreasing tensions regarding tariffs.
Trump emphasized that the US will not unilaterally cut these tariffs, though he acknowledged the importance of public perception for both parties involved.
Bescent indicated a welcoming stance towards mutual tariff reductions, stating that the current situation isn’t sustainable, particularly from China’s side, and pointed out that tariffs at such high levels are equivalent to an embargo.
Meanwhile, a spokesperson from China’s Foreign Ministry, Lin Jiang, reiterated that Beijing’s position remains unchanged. He argued that the current trade conflict has been initiated by the United States, urging a cessation of threats and a move towards dialogue rooted in equality and mutual respect.
The tariffs have led to significant drops in imports, raising concerns about potential shortages on US retail shelves. The ports of Los Angeles and Long Beach, the busiest and third-busiest in the country, reported a 44% decline in docked vessels compared to the same time last year, reflecting the adverse effects of the tariffs.
A report from Apollo Global Management has forecasted a recession this summer, linked to shortages and job losses in the trucking industry and major retail chains.
Despite this, Trump downplayed the negative effects of the new tariffs, asserting they might influence his public approval and broader political goals. He remarked that kids might find fewer toys available, saying, “Yeah, the shelves will be empty,” highlighting how the situation could affect consumers.
China is among the top three trading partners for the United States, alongside Canada and Mexico. Last year, the US imported goods worth $438.9 billion from China, while China imported $143.5 billion from the US during the same timeframe.
The current tariff rate imposed on Chinese imports stands at 147.6%, which has significantly increased from about 21% when Trump took office in January.
