President Trump’s administration is weighing a reduction of its punitive China duties—currently at 145%—to as low as 50–65%, or even a tiered structure (35% on non-strategic goods, 100% on security-sensitive items), signaling a potential thaw in the trade war that has rattled markets.

Tariff Reduction Proposals on the Table

Range: Cuts could bring China levies down from 145% to 50–65%.

Tiered Approach:

35% on items not deemed a national-security threat.

100% on goods critical to U.S. interests.

Decision Status: Still under internal debate; no final call from President Trump.

Market Reaction and Sentiment

Equity Rally: U.S. stocks rose on Tuesday as investors welcomed signs of easing trade tensions.

Caution Remains:

Treasury Secretary Bessent called negotiations a “slog,” warning no unilateral tariff cuts.

Chinese officials said they’ll only talk if threats cease—underscoring conditional goodwill.

Broader Trade Context

Recent Escalation:

U.S. duties hiked to 145% in early April.

China retaliated with 125% tariffs on American imports.

90-Day Pause: Tariffs on most other countries remain suspended, allowing side-deals to be struck.

What’s Next for Investors

Formal Tariff Announcements

Watch for a White House or USTR press release detailing any approved reductions.

Trade Negotiation Calendar

Monitor upcoming meetings between U.S. and China trade envoys.

Economic Data

Key readings—such as U.S. durable goods and China PMI—will gauge whether a tariff rollback spurs trade activity.

Track Upcoming Trade Events
Stay ahead of tariff decisions and negotiation milestones with the? Economics Calendar – Economics Data APIfrom Financial Modeling Prep.This API provides real-time scheduling of policy announcements, trade talks, and major economic indicators that drive market sentiment.