China Considers Suspending 125% Tariffs on Medical Equipment, Chemicals as Trump Eyes US Tariff Cuts

China is considering suspending its 125% tariffs on certain American goods, including medical equipment, industrial chemicals such as ethane, and aircraft leasing, as part of tentative steps to ease escalating trade tensions with the United States. This move comes amid ongoing economic decoupling between the two countries, which some analysts warn could lead to a broader geopolitical cold war involving military tensions and global economic instability. The tariffs in question were imposed by the Trump administration, which recently indicated a willingness to substantially reduce the high levies on Chinese imports to the US, potentially lowering them to between 50% and 65%. Chinese officials reportedly view recent statements by former President Donald Trump as signs of possible concessions. Meanwhile, Chinese President Xi Jinping has strengthened authoritarian controls and surveillance within China to bolster resilience against US pressure, urging officials to adopt a strategy of "extreme thinking" in preparation for continued confrontation. Beijing’s tariff reduction proposal aims to prompt reciprocal tariff cuts from Washington, which currently imposes a 145% import levy on most Chinese goods.