If Trump reduces tariffs to 50-65%, will China follow suit?
On April 23, The Wall Street Journal exclusively reported, citing informed sources, that Trump is considering a significant reduction of the 145% tariff on China, with a senior White House official stating that it could be lowered to around 50% to 65%. Trump is also considering a 'tiered taxation' scheme, imposing a 35% tariff on goods that the U.S. does not consider a national security threat, while goods related to so-called 'American strategic interests' would face at least a 100% tariff.
The U.S. proposed lowering to 50-65% as a condition to engage China in talks. China has three strategies:
1. To directly tell the U.S., 'You offer what you can, I will match it exactly; no further discussions.'
2. Not lowering to 20% means no talks; postal tariffs and port fees for Chinese-made ships must also be eliminated. China has already retaliated for the 'fentanyl tariff' and will not pursue that further.
3. Not lowering to the Biden era means no talks; after the 'fentanyl tariff' is canceled, China will also lift retaliatory measures that have been in place since January, including the rare earth export ban.