President Donald Trump told reporters Tuesday that his 145% tariff on goods from China will come down “substantially.”
“145% is very high and it won’t be that high. It’s not going to be that high,” he said, adding, “It will come down substantially, but it won’t be zero.”
Trump said he believes the U.S. and China will “live together very happily and ideally work together,” and reach a deal so that the tariff “will not be anywhere near that number.”
“We’re going to be very good to China. I have a great relationship with [Chinese President Xi Jinping],” he said, but also added that he believed China was taking advantage of the U.S.
“China was taking us for a ride,” he said.
Trump’s 145% tariff prompted China to respond with a 125% tariff on U.S. imports, escalating the trade war between the two nations and causing the American stock market to nosedive.
Earlier on Tuesday, Treasury Secretary Scott Bessent said the tariff showdown with China was unsustainable and that he expected a “de-escalation.”
“I do say China is going to be a slog in terms of the negotiations,” Bessent said at a private speech for JPMorgan Chase, according to a transcript obtained by The Associated Press. “Neither side thinks the status quo is sustainable.”
White House press secretary Karoline Leavitt also indicated Tuesday that Trump wouldn’t be playing hardball with China on a trade deal.
“The president and the administration are setting the stage for a deal with China,” she told reporters. “Everyone involved wants to see a trade deal happen and the ball is moving in the right direction.”