President Trump’s administration is weighing a reduction of its punitive China duties—currently at 145%—to as low as 50–65%, or even a tiered structure (35% on non-strategic goods, 100% on security-sensitive items), signaling a potential thaw in the trade war that has rattled markets.
Tariff Reduction Proposals on the Table
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Range: Cuts could bring China levies down from 145% to 50–65%.
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Tiered Approach:
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35% on items not deemed a national-security threat.
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100% on goods critical to U.S. interests.
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Decision Status: Still under internal debate; no final call from President Trump.
Market Reaction and Sentiment
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Equity Rally: U.S. stocks rose on Tuesday as investors welcomed signs of easing trade tensions.
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Caution Remains:
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Treasury Secretary Bessent called negotiations a “slog,” warning no unilateral tariff cuts.
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Chinese officials said they’ll only talk if threats cease—underscoring conditional goodwill.
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Broader Trade Context
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Recent Escalation:
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U.S. duties hiked to 145% in early April.
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China retaliated with 125% tariffs on American imports.
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90-Day Pause: Tariffs on most other countries remain suspended, allowing side-deals to be struck.
What’s Next for Investors
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Formal Tariff Announcements
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Watch for a White House or USTR press release detailing any approved reductions.
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Trade Negotiation Calendar
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Monitor upcoming meetings between U.S. and China trade envoys.
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Economic Data
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Key readings—such as U.S. durable goods and China PMI—will gauge whether a tariff rollback spurs trade activity.
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Track Upcoming Trade Events
Stay ahead of tariff decisions and negotiation milestones with the
🔗 Economics Calendar – Economics Data API
from Financial Modeling Prep.
This API provides real-time scheduling of policy announcements, trade talks, and major economic indicators that drive market sentiment.
