Wall Street rallied on Tuesday as President Donald Trump and Treasury Secretary Scott Bessent both offered rare signs of potential relief in the ongoing U.S.-China tariff battle. Speaking to reporters, Trump confirmed that the 145% tariffs on Chinese imports would not remain in place indefinitely.
“145% is very high, and it won’t be that high,” Trump said Tuesday afternoon.
“It will come down substantially. It won’t be zero. It used to be zero.”
The comments followed Bessent’s appearance at a closed-door investor summit, where he reportedly said that deescalation with Beijing was likely, describing the current tit-for-tat tariff cycle as “unsustainable.”
📉 Markets Breathe a Sigh of Relief
Bessent’s remarks and Trump’s public comments combined to push U.S. stock markets upward, with investors hopeful that the White House is softening its stance, or at least preparing for a negotiated settlement.
Last week, Bessent hinted to Yahoo Finance that he expected “clarity” on tariffs soon — language interpreted by analysts as groundwork for future rollback scenarios.
🇨🇳 Tariff Snapshot: Where Things Stand
While optimism rises, the reality on the ground remains tense. The current U.S. tariff structure on Chinese goods includes:
- 125% reciprocal tariff
- 20% fentanyl crisis tariff
- Section 301 tariffs ranging from 7.5% to 100%
China, for its part, has hiked tariffs on U.S. imports to 125%, up from 84%, in response to Washington’s moves.
Despite the hostile climate, the White House continues to send mixed signals. On the one hand, Trump hinted at delaying certain auto tariffs, while on the other, he insisted these measures “will eventually come to fruition.” The baseline 10% tariff introduced on April 5 remains intact across all impacted imports.
🇮🇳 Broader Trade Talks: U.S. Eyes India as Counterbalance
In a related diplomatic push, U.S. Vice President JD Vance met with India’s Prime Minister Narendra Modi on Tuesday, signaling progress on technology, defense, and energy deals. Analysts say strengthening U.S.-India ties may be part of a broader strategy to diversify trade reliance away from China.
🌍 Outlook: From Confrontation to Negotiation?
Though tensions remain elevated, the market is increasingly interpreting recent signals as a pivot point in trade relations. The Trump administration’s evolving tone — from tariff escalation to “temporary measures” — may offer a path toward rebuilding investor confidence.
“The administration knows the tariffs are weighing on consumers and markets,” said one trade policy analyst. “This could be their first step in crafting an exit ramp.”
Trump Says China Tariffs Will Drop From 145% as Bessent Signals Deescalation
Wall Street rallied on Tuesday as President Donald Trump and Treasury Secretary Scott Bessent both offered rare signs of potential relief in the ongoing U.S.-China tariff battle. Speaking to reporters, Trump confirmed that the 145% tariffs on Chinese imports would not remain in place indefinitely.
The comments followed Bessent’s appearance at a closed-door investor summit, where he reportedly said that deescalation with Beijing was likely, describing the current tit-for-tat tariff cycle as “unsustainable.”
📉 Markets Breathe a Sigh of Relief
Bessent’s remarks and Trump’s public comments combined to push U.S. stock markets upward, with investors hopeful that the White House is softening its stance, or at least preparing for a negotiated settlement.
Last week, Bessent hinted to Yahoo Finance that he expected “clarity” on tariffs soon — language interpreted by analysts as groundwork for future rollback scenarios.
🇨🇳 Tariff Snapshot: Where Things Stand
While optimism rises, the reality on the ground remains tense. The current U.S. tariff structure on Chinese goods includes:
China, for its part, has hiked tariffs on U.S. imports to 125%, up from 84%, in response to Washington’s moves.
Despite the hostile climate, the White House continues to send mixed signals. On the one hand, Trump hinted at delaying certain auto tariffs, while on the other, he insisted these measures “will eventually come to fruition.” The baseline 10% tariff introduced on April 5 remains intact across all impacted imports.
🇮🇳 Broader Trade Talks: U.S. Eyes India as Counterbalance
In a related diplomatic push, U.S. Vice President JD Vance met with India’s Prime Minister Narendra Modi on Tuesday, signaling progress on technology, defense, and energy deals. Analysts say strengthening U.S.-India ties may be part of a broader strategy to diversify trade reliance away from China.
🌍 Outlook: From Confrontation to Negotiation?
Though tensions remain elevated, the market is increasingly interpreting recent signals as a pivot point in trade relations. The Trump administration’s evolving tone — from tariff escalation to “temporary measures” — may offer a path toward rebuilding investor confidence.
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