Trump Administration Mulls Tariff Reductions on Chinese Goods

The Trump administration is considering a reduction of tariffs on Chinese imports, pending negotiations with Beijing. The rates, possibly decreasing to 50-65%, aim to ease tensions. Market reactions were positive, evidenced by a surge in U.S. stocks. Discussions remain ongoing with multiple options under consideration.

The Trump administration may reduce tariffs on Chinese imports, contingent on successful negotiations with Beijing, according to information from sources on Wednesday. The move, aligning with recent constructive comments by President Trump, seeks to ease economic tensions between the U.S. and China.

Reportedly, tariffs could drop to 50-65%, a significant decrease from the current 145% imposed since Trump's return to office. While no definitive decision has been made, the administration is exploring various strategies to balance national security concerns and economic interests.

Financial markets responded favorably, with the S&P 500 index experiencing a notable boost after the news. This development follows positive market sentiment due to Trump's optimistic outlook on trade discussions and his decision to not dismiss the Federal Reserve head.

(With inputs from agencies.)