OAN Staff Blake Wolf
11:04 AM – Wednesday, April 23, 2025
President Donald Trump has hinted at a possible reversal of course in his trade war with China, stating that high tariffs on Chinese imports will “come down substantially, but it won’t be zero.” These remarks seemingly prompted markets to spike on Wednesday.
Advertisement
Treasury Secretary Scott Bessent affirmed Trump’s comments on Wednesday as well. He explained that if Beijing is prepared to take action to rebalance its economy, there is a chance for a “big deal” with China to reduce tariffs.
Bessent gave a keynote address at the Institute of International Finance (IIF) and he took part in a Q&A session. He stated that if China is prepared to shift its economy away from manufacturing exports and toward greater consumption, the United States and China could reach a tariff agreement.
“There is an opportunity for a big deal here,” Bessent said. “The U.S. is looking to rebalance to more manufacturing. The identity of that would be less consumption.”
“If China is serious on less dependence on export-led manufacturing growth and a rebalancing toward a domestic economy — I think they use the term ‘dual circulation,’ well, right now it’s really singular circulation. And if they want to rebalance, let’s do it together. This is an incredible opportunity,” he added.
A senior White House official told the Wall Street Journal that tariffs would most likely drop by 50 to 65 percent, which is down from the current percentage of 145%.
“We are going to have a fair deal with China,” Trump stated on Wednesday. “It’s going to be fair.”
“145% is very high and it won’t be that high,” Trump continued. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”
In response to President Trump’s tariffs, China raised levies on U.S. imports to 125%, while restricting the export of key minerals used in everything from Apple iPhones to missile systems.
Meanwhile, China’s Foreign Ministry responded later to President Trump’s comments on Wednesday, arguing that the United States must “stop its threats and coercion, and engage with China on the basis of equality, mutual respect and reciprocity.”
“Claiming it wants to reach an agreement with China while constantly applying maximum pressure is not the right way to engage with China — and it simply won’t work,” stated ministry spokesperson Guo Jiakun.
“China’s position on the tariff war initiated by the United States is very clear: We do not want to fight, but we are not afraid to fight. If it’s to fight, we’ll fight till the end. If it’s to talk, our door is wide open,” he added.
President Trump also spoke on the rest of the roughly 90 nations that the U.S. imposed reciprocal tariffs on, stating: “Everybody wants to be a part of what we’re doing. They know that they can’t get away with it any longer, but they’re still going to do fine, and we’re going to have a country that you can be proud of.”
“This country is not going to be losing money on trade anymore. We are losing $2 trillion a year on trade. Now we’re going to be making money, a lot of money. So that’s very good,” Trump added.
Meanwhile, the Dow Jones Industrial Average rocketed up over 800 points amidst the optimism of a potential deal between the world’s two largest economic superpowers.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Advertisements below
