Thaw in tariff war? US may slash levies against China to more than half in some cases, WSJ reports

The final decision on lowering China tariffs will be taken by US President Donald Trump as White House refuses to comment on the issue, WSJ says.

Amid the ongoing trade war between US and China, there are signs of reconciliation. A Wall Street Journal report on Wednesday said that the Donald Trump administration is mulling over lowering the levies against China to more than half in some cases.

The development, if it happens, will be a major de-escalation point in the trade war. Without naming any official, the WSJ report cited the White House sources saying that tariffs against Beijing may be brought down to anywhere between 50 to 65 percent. Additionally, the White House may announce a more staggered response in the issue. It also said that Trump has to take final call on the proposal as several options are being considered.

The development comes a day after Trump had said that steep tariff on China will be lowered after negotiations with Xi Jinping. Talking to reporters in the Oval Office, Trump himself said that “145 percent (tariff) is very high.” He had said that the levies won’t be “that high.” However, he had also said that the tariffs won’t be slashed to zero.

Meanwhile, US Treasury Secretary Scott Bessent in his keynote address to the Institute of International Finance in Washington said that "America first does not mean America alone." Striking a conciliatory tone, Bessent said that the time warrants a "deeper collaboration".

Outlining the need to establish equilibrium in the global financial system, Bessent further said that "China needs to change." Indicating some major de-escalation in the trade war, Bessent also added that a decision will be announced in "very near future."