Per the WSJ report, a tiered system is also under discussion, modelled on a House committee proposal from late last year. Under that framework, goods not considered a national security concern would face a 35% tariff, while those deemed strategic would be subject to tariffs of at least 100%. The proposal includes a five-year phase-in period, the report added.
Trump said on Tuesday he was open to reducing the 145% tariffs imposed on Chinese goods, indicating they “will come down,” but adding, “it won’t be zero.” Treasury Secretary Scott Bessent told a closed-door meeting of investors that the ongoing standoff with China was unsustainable and that he expects the situation to de-escalate soon.
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On Wednesday, Chinese officials indicated a willingness to re-engage in trade talks, though warned that negotiations would not proceed under ongoing threats. According to sources familiar with Chinese policymaking, Trump’s comments were interpreted by some in Beijing as a sign of retreat.
Both sides have shown greater openness to dialogue after several weeks of rising tariffs and strained rhetoric, which contributed to sharp declines in global markets. Over the past month, the United States and China—two of the world’s largest economies—have traded tariff hikes and exchanged pointed statements, shaking investor confidence.
Previous WSJ reports suggested the White House had been using tariffs to push allies to curb trade with China. Despite the pressure campaign, Treasury Secretary Scott Bessent has said there remains potential for a trade agreement. Any meaningful progress would likely require direct involvement from President Trump and Chinese President Xi Jinping, who have not spoken since Trump returned to office.
Also read: Trump’s economic approval rating plumbs new depths: CNBC poll
