In a dramatic reversal, President Donald Trump has signaled a significant shift in his approach to U.S.-China trade relations. After imposing a staggering 145% tariff on Chinese imports, Trump now states he plans to be “very nice” to China in any forthcoming trade talks. He acknowledged the tariffs as “unsustainable” and suggested they could be reduced “substantially,” though not eliminated entirely.
This change in tone comes amid mounting pressure from financial markets, business leaders, and top advisers, who have warned that the escalating trade war is harming the U.S. economy. Treasury Secretary Scott Bessent described the current tariff levels as a de facto trade embargo and indicated that a de-escalation is anticipated, though formal negotiations have not yet begun.
Despite Trump’s softened rhetoric, China’s Foreign Ministry has firmly denied any ongoing negotiations with the U.S. regarding the current tariff situation. Beijing has emphasized that any discussions must be based on mutual respect and equality, and that the U.S. must first cancel all unilateral tariffs.
The abrupt policy shift has had immediate effects on global markets. Stock markets surged following Trump’s announcement, with U.S. indices posting significant gains. Asian markets, including Japan’s Nikkei and Hong Kong’s Hang Seng, also experienced notable increases, reflecting investor optimism about the potential easing of trade tensions.
As the situation develops, the international community watches closely to see whether this change in approach will lead to a lasting resolution or if the trade war will resume with renewed intensity.