China, Mexico, and Canada are likely on separate tariff talks - WSJ.
AinvestFriday, Apr 25, 2025 4:46 pm ET

China, Mexico, and Canada are likely on separate tariff talks - WSJ.
The administration of U.S. President Donald Trump is reportedly considering reducing tariffs on Chinese goods, according to Reuters. The news agency cited an unnamed source who stated that the administration is exploring this option as part of ongoing talks with Beijing. The White House has not acted unilaterally on this matter.The Wall Street Journal (WSJ) reported that the White House is considering lowering tariffs from their current level of 145 percent to between 50 percent and 65 percent. This reduction could be part of an effort to de-escalate tensions between the two countries. Trump mentioned the possibility of a deal to lower tariffs but did not provide specific details. The U.S. Treasury Secretary, Scott Bessent, declined to comment on the WSJ report but noted that both countries view the current tariff rates as unsustainable.
The tariff levels being discussed are still likely to be high enough to deter a significant portion of trade between the world's two largest economies. For instance, German shipper Hapag-Lloyd reported that 30 percent of its U.S.-bound shipments from China have been canceled. China has retaliated with 125 percent tariffs on U.S. imports and other measures.
The market reacted positively to the news, with U.S. stocks extending early session gains. The S&P 500 index was up roughly 3 percent in mid-morning trading. The WSJ report suggests that discussions remain fluid, with several options on the table. One proposed approach is a tiered system similar to one proposed by the House of Representatives Committee on China late last year, which would set different tariff levels based on the perceived threat to national security.
In addition to these tariffs, Trump has imposed a blanket 10 percent tariff on all other U.S. imports and higher duties on steel, aluminum, and autos. He has also suspended targeted tariffs on dozens of other countries until July 9 and floated additional industry-specific levies on pharmaceuticals and semiconductors. These measures have caused significant market volatility and raised concerns about a potential global recession.
The International Monetary Fund (IMF) has warned that these tariffs will slow global growth and increase debt levels. The IMF's latest Global Financial Stability Report forecasts U.S. economic growth to be 1.8 percent for the year, a sharp decline from its previous estimate of 2.7 percent.
While the U.S. and China are engaged in tariff talks, separate discussions between the two countries over the fentanyl epidemic have not yielded results. The White House spokesperson, Kush Desai, described any reports on tariffs as "pure speculation" unless they come directly from Trump.
References:
[1] https://www.aljazeera.com/economy/2025/4/23/trump-administration-considers-china-tariff-cuts-report

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