Trump Plans to Cut China Tariffs From 145% to 50–65%; China Responds With 125% Tariffs, Firms Shift to U.S.
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President Donald Trump has stated that the current U.S. tariff rate on Chinese goods, set at 145%, will be reduced substantially after trade negotiations, though it will not return to zero. The administration is considering lowering tariffs to a range between 50% and 65% to ease tensions with Beijing. Trump noted, 'It used to be zero.'
China has imposed retaliatory tariffs of 125% on American imports since January and is reportedly considering exemptions for certain U.S. goods due to economic concerns, but no official list has been released. South Korean customs authorities have detected cases where Chinese firms re-labeled products as South Korean to bypass U.S. tariffs, including high-value items such as surveillance cameras and battery materials.
In response to the tariffs, many Chinese manufacturers, including Ryan Zhou, who is opening a factory in Dallas, are establishing production facilities in the United States to avoid the increased duties. For some companies, the U.S. market accounts for the majority of their orders, with Zhou noting that 95% of his business relies on U.S. customers. Other strategies include shifting manufacturing from China to countries like India, though this presents its own challenges. Nike has also attempted to move some manufacturing from China, Indonesia, and Vietnam to North America.
The trade dispute has caused volatility in U.S. Treasury markets and a weakening dollar, with potential effects on U.S. borrowing costs. American companies are weighing whether to adjust supply chains or wait for the tariff dispute to subside.
🇨🇳🇺🇸 CHINESE FACTORIES ARE PACKING THEIR BAGS FOR AMERICA — THANKS, TARIF FIGHT
Ryan Zhou, who makes mugs and T-shirts in China, is racing to open a factory in Dallas because new U.S. tariffs are so high they'd make your head spin.
Sending stuff from China now costs way more, https://t.co/HvHDJynLYi https://t.co/wP9EdtPK9A
#本周热读 People familiar with the matter revealed that the Trump administration is considering drastically reducing the high tariffs imposed on Chinese goods exported to the US to ease the tense relationship with Beijing. A senior White House official said that tariffs on China may be reduced to about 50% to 65%.
People who have talked to Chinese officials said that in Chinese decision-making circles, Trump's remarks on Tuesday were seen as a sign that he was making concessions. https://t.co/rPX9vRa2NE
🇨🇳🇺🇸 CHINESE FACTORIES ARE PACKING THEIR BAGS FOR AMERICA — THANKS, TARIF FIGHT
Ryan Zhou, who makes mugs and T-shirts in China, is racing to open a factory in Dallas because new U.S. tariffs are so high they'd make your head spin.
Sending stuff from China now costs way more, https://t.co/HvHDJynLYi https://t.co/wP9EdtPK9A
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Two very different SCMP stories on the effects of rising trade conflict. In one, "Chinese manufacturers across a wide range of sectors have been quietly but rapidly moving to set up new American facilities in recent weeks, as they try...
https://t.co/09b3QuujyL
Trump: 145% [on China] is very high, and it won't be that high. It will come down substantially. It will not be zero. It used to be zero. https://t.co/AiCcXR52k0
Earlier this week, President Donald Trump acknowledged that the current tariff rate against China were “very high” and suggested that they would “come down substantially” after trade negotiations. (Photo: Vernon Yuen/NurPhoto via Getty Images) https://t.co/a7wJjuKL9b https://t.co/pFr5i1R1xC