U.S. tariffs on China may be reduced to about 50%-65%, and a 'tiered taxation' plan is being considered.
50%-65% essentially means that most trade has stopped, only emotional value remains, but it still has some impact on yesterday's market rise!
For several consecutive days, the U.S. government has been sending signals from top to bottom to 'cool down' the U.S.-China tariff standoff, making the meaning of 'unable to hold on' more obvious. Now, U.S. media have also begun to leak this information.
On April 23 local time, the Wall Street Journal cited exclusive reports from insiders that the Trump administration is considering a significant reduction of high tariffs on Chinese imports, with reductions in some cases exceeding half. This move aims to ease tensions between China and the U.S., which have currently disrupted global trade and investment activities. Insiders revealed that President Trump has not made a final decision and claimed that relevant discussions still have variables, with multiple options currently being considered.
A senior White House official stated that U.S. tariffs on China may be reduced to a range of 50% to 65%. Insiders say the Trump administration is also considering a so-called 'tiered taxation' plan, similar to the proposal put forward by the U.S. House of Representatives' 'China-U.S. Strategic Competition Special Committee' at the end of last year—imposing a 35% tariff on goods that the U.S. does not consider a national security threat, while imposing at least a 100% tariff on goods involving so-called 'U.S. strategic interests.' This proposal suggests that the tariff system should be implemented in phases over five years.
Reports state that White House Deputy Press Secretary Kush Desai responded: 'President Trump has made it clear that China needs to reach an agreement with the U.S. The decision on tariffs will be made directly by the president. Anything else is merely speculation.'
Earlier on April 23, Chinese Foreign Ministry spokesman Guo Jikun stated that if the U.S. truly wants to resolve issues through dialogue and negotiation, it should stop threats and coercion, and engage in dialogue with China on an equal, respectful, and mutually beneficial basis. Saying they want to reach an agreement with China while continuously applying extreme pressure is neither the correct way to deal with China nor a viable approach.
Conduct multilateral trade negotiations under the WTO framework.
The strategic goal of the understanding king is to abandon the WTO and establish a multilateral bilateral system (U.S.-China, U.S.-Japan, U.S.-Europe, U.S.-South Korea, etc.), where the rules of each bilateral system are different and all are dominated by the U.S. This undermines the international trade system. Our country insists on conducting multilateral negotiations under the WTO framework, adhering to multilateralism and mutual benefits, which can garner more support.
Now the understanding king has initially conceded, the advantage is on my side.
The timing of the interest rate cut is the key for the final bull market!