Since Trump’s return to the White House in January, the US has imposed additional tariffs of 145 per cent on many products from China.
These include duties initially imposed over China’s alleged role in the fentanyl supply chain and later over practices Washington deemed unfair.
Beijing has responded with sweeping counter-tariffs of 125 per cent on US goods.
Trump acknowledged on Tuesday that 145 per cent is a “very high” level, and that this will “come down substantially”.
“They will not be anywhere near that number,” but “it won’t be zero,” the president said.
“Ultimately, they have to make a deal because otherwise, they’re not going to be able to deal in the United States”.
Speaking at a closed-door event hosted by JPMorgan Chase, Treasury Secretary Scott Bessent said on Tuesday that the tariffs amounted to a reciprocal trade embargo.
But Bessent said he expects de-escalation in the near future, according to a person who was in the room.
Such a development should bring markets some relief, he added at the event, which was not open to media.
Wall Street’s major indexes jumped after a news report on Bessent’s comments at the event, which took place on the sidelines of the International Monetary Fund and World Bank’s Spring Meetings, while Asian markets later rallied in early Wednesday trading.
