Trump Seeks Fair Trade Tariffs With China Amid 145% Duties

President Trump has declared his intention to engage in negotiations with China to establish fair trade tariffs, indicating a potential change in the ongoing trade disputes between the two major economies. This announcement follows a period of escalating tariffs, with China increasing duties on US imports to 125% from 84%, and the US responding with tariffs on Chinese imports, which have reached 145% on most goods. The rising tariffs have led to increased costs for businesses and consumers, with some companies reporting that the tariffs have more than doubled their costs on newly imported merchandise, making it "unaffordable" to continue operations under the current conditions.

The World Trade Organization has cautioned that the trade war could result in a significant decrease in goods traded between the US and China, potentially as much as 80%. This would have wide-ranging implications for both economies, as well as for global trade more broadly. The Trump administration has temporarily halted higher tariff rates less than 24 hours after they went into effect, but a global 10 percent tariff as well as a 145% tariff on Chinese imports remain in place. This pause has provided the White House with an opportunity to negotiate new trade and investment deals, with a 90-day window to potentially reach an agreement with China.

In an effort to alleviate the burden on automakers, the White House confirmed that Trump plans to sign an executive order that will roll back parts of the 25% tariffs on imported vehicles and auto parts. This decision comes as Trump hits 100 days in office and is seen as an effort to attract investment and support the US auto industry. The administration has stated that the tariffs are intended to bring China to the negotiating table, with the ultimate goal of achieving fair trade agreements that benefit both countries.

The negotiations come at a time when Trump's poll numbers on the economy have fallen during the trade fight, with some analysts suggesting that the tariffs could have a negative impact on the US economy. However, the administration remains optimistic that the tariffs will ultimately lead to a more favorable trade agreement with China. The negotiations are expected to focus on issues such as intellectual property protection, forced technology transfers, and market access for US companies in China. The outcome of these negotiations will have significant implications for the global economy and for US-China relations more broadly.