Washington: US President Donald Trump says he will substantially lower his unprecedented 145 per cent tariffs on Chinese goods and “won’t play hardball” in recognition the current trade war between the world’s two largest economies cannot last.
Trump’s comments came after US Treasury Secretary Scott Bessent told a closed-door meeting with investment bankers the negotiations with China would be a “slog” but neither side considered the status quo sustainable.
US President Donald Trump acknowledged the current 145 per cent tariff on imports from China was “very high”.Credit: AP
“I’m not going to say, ‘Oh I’m going to play hardball with China’,” Trump said in the Oval Office on Wednesday AEST.
“We’re going to be very nice, they’re going to be very nice.
“But ultimately, they have to make a deal because otherwise they’re not going to be able to deal in the United States. We want them involved. But they have to – and other countries have to – make a deal. And if they don’t make a deal, we’ll set the deal.”
Trump acknowledged the current 145 per cent tariff on imports from China was “very high” and effectively a trade embargo. Whatever number was finally set would be much lower, he said.
“It won’t be anywhere near that high,” he said. “It’ll come down substantially, but it won’t be zero. It used to be zero, we were just destroyed. China was taking us for a ride.
“It’s at 145 per cent. It will not be anywhere near that number … If we don’t make a deal, we’ll just set it. We’ll just set the number.”
Trump said the deal would be crafted by himself, Bessent and Commerce Secretary Howard Lutnick – who this month counselled the president to wind back his so-called reciprocal tariffs to a baseline of 10 per cent for 90 days – to allow for negotiation.
