Did Donald Trump blink in the face of Chinese pressure? POTUS makes shock move on tariffs

Treasury Secretary Scott Bessent called the current tariff levels on China “unsustainable”

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While Trump acknowledged the market uptick, he avoided directly addressing Bessent’s concerns.

Washington D.C.: President Donald Trump announced Tuesday that tariffs on Chinese goods would “come down substantially, but it won’t be zero", signaling a potential softening in the US–China trade war. His comments followed remarks from Treasury Secretary Scott Bessent, who called the current tariff levels “unsustainable” and suggested an eventual de-escalation.

The US has imposed import taxes of 145% on Chinese goods, while China retaliated with 125% tariffs on American exports. The trade conflict has rippled through global markets, causing stock market volatility and raising interest rates on US debt, as investors grow concerned about slowed economic growth and inflation.

Bessent, in remarks confirmed by sources familiar with his closed-door conversation, noted, “China is going to be a slog in terms of the negotiations. Neither side thinks the status quo is sustainable.” His comments, reported by Bloomberg, triggered a 2.5% rise in the S&P 500.

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While Trump acknowledged the market uptick, he avoided directly addressing Bessent’s concerns. “We’re doing fine with China,” Trump said, striking a more conciliatory tone. He emphasized a cooperative approach with Chinese President Xi Jinping, saying, “We’re going to live together very happily and ideally work together.”

Despite his openness to reducing the current 145% tariff, Trump offered no indication of removing the baseline 10% tariff applied broadly to other nations. Talks with trade partners including Japan, India, and the European Union are ongoing.