President Donald Trump stated his intention to be “very nice” to China in trade talks and mentioned that tariffs will decrease if a deal is reached between the two countries, indicating a potential softening of his tough stance on Beijing amid market volatility.
“It will come down substantially but it won’t be zero,” Trump said in Washington on Tuesday, echoing earlier comments from Treasury Secretary Scott Bessent that the tariff standoff is unsustainable. Trump added, “we’re going to be very nice and they’re going to be very nice, and we’ll see what happens.”
Trump also mentioned that he does not feel the need to play hardball with Chinese leader Xi Jinping and that he would not raise the topic of COVID-19 during discussions, acknowledging the sensitivity of the issue in Beijing. The White House recently launched a website implying that the virus originated from a lab in China, which upset Chinese diplomats.
Trump’s remarks come as U.S. stocks and Treasuries have faced challenges since the implementation of tariffs on April 2. The steep duties imposed on China by Trump earlier this year are still in effect, with exceptions made for certain goods like computers and popular electronics.
“Trump is feeling pressure due to the declining markets and high U.S. Treasury yields,” noted Alicia Garcia Herrero, chief Asia Pacific economist at Natixis. “He is in need of a swift deal. China does not need to make major concessions in these circumstances.”
Although China has not officially responded to Trump’s pledge, media outlet Cailian viewed it as a signal that Trump is softening his position on tariffs. Earlier this month, Beijing indicated that it expects specific actions from the Trump administration before engaging in discussions, including controlling negative remarks made by cabinet members.
Other conditions include a more unified U.S. stance and addressing China’s concerns regarding American sanctions and Taiwan, as per a source familiar with the Chinese government’s perspective. Beijing also desires the U.S. to appoint a negotiator supported by the president who can assist in preparing a deal for Trump and Xi to sign when they meet.
Previously, Beijing expressed displeasure with Vice President JD Vance’s comments about “Chinese peasants,” with a diplomat labeling them as “ignorant and disrespectful.”
