Trump: Opening up China would be a big win.

Trump: Opening up China would be a big win.

U.S. President Donald Trump has signaled a significant reduction in tariffs on Chinese imports, indicating a potential easing of tensions in the ongoing trade war between the two nations. Speaking at a White House press briefing on Tuesday, Trump stated that the current tariff rate of up to 145% is "very high and it won’t be that high," and that it will "come down substantially" [1].

The President's comments marked a notable shift from his earlier combative stance, offering a glimmer of hope for a potential resolution to the prolonged standoff that has rattled global markets and strained economic ties. Trump reiterated that he does not intend to fire Federal Reserve Chair Jerome Powell, a move that had previously caused market jitters [2].

The prospect of a trade deal with China has lifted market sentiment, with Wall Street's main indexes rallying at the open on Wednesday. The Dow Jones rose 566.94 points or 1.45% to close at 40,376.11, the S&P 500 gained 94.88 points or 1.79% to 5,469.69, and the Nasdaq jumped 441.88 points or 2.71% to end at 17,029.86 [3].

Treasury Secretary Scott Bessent also hinted at a softening stance, describing the current tariff situation as unsustainable and predicting a near-term easing of tensions. He emphasized that rather than a full decoupling, the U.S. is aiming for a trade "rebalancing" [1].

While Beijing has maintained a firm stance, China has shown openness to negotiations but only on the basis of mutual respect and balanced terms. Trump has expressed his desire for Chinese President Xi Jinping to join him at the negotiating table, stating that "ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States, and we want them involved" [1].

As global finance ministers and central bankers converge in Washington this week, all eyes are on the progress of trade talks on the sidelines of the spring meetings. The U.S.-China trade conflict remains a critical issue, and the potential for a trade deal could significantly impact global markets.

References:
[1] https://www.thehindu.com/news/international/donald-trump-says-wont-fire-fed-chief-signals-china-tariffs-will-come-down/article69481311.ece
[2] https://news.abplive.com/business/end-of-us-china-trade-war-trump-signals-softening-stance-says-will-reduce-tariffs-on-beijing-substantially-1767368
[3] https://economictimes.indiatimes.com/markets/stocks/news/dow-jones-jumps-1000-points-at-open-nasdaq-sp-500-soar-3-as-trump-goes-easy-on-feds-powell/articleshow/120555364.cms?from=mdr