On April 23, 2025, The Wall Street Journal reported that the Trump administration is considering significantly reducing tariffs on Chinese goods in an effort to de-escalate the trade war between the world's two largest economies. According to information published on Bloomberg's Telegram channel, tariffs on Chinese imports could be cut to 50-65%, significantly lower than the current 145% imposed in early April. The decision sparked a rally in financial markets, with Wall Street indices including the S&P 500 rising 1,5% and shares of companies dependent on Chinese imports, such as Apple and Tesla, rising 2-3%, Reuters reported.

The administration is also exploring a “tiered approach” to tariffs similar to a proposal by the House China Committee in December 2024. Under that plan, goods that do not pose a threat to U.S. national security would be subject to tariffs of 35%, while strategically important goods such as semiconductors and military components could face tariffs of 100% or more. Treasury Secretary Scott Bessent has said the approach would protect key industries while reducing the burden on consumers who have suffered from higher prices due to high tariffs. Bessent, speaking at a closed-door investor meeting hosted by JPMorgan, said the current tariff levels are “unsustainable” and expressed confidence that the trade conflict will soon de-escalate.

The trade war between the US and China has escalated since Trump, upon taking office on January 20, 2025, fulfilled a campaign promise and imposed tariffs of up to 145% on Chinese imports. China responded with counter-tariffs of 125% on American goods and suspended exports of rare earth elements, which are critical to the US defense industry. According to The Washington Post, this has led to higher prices for electronics and household goods in the US, as well as a decline in global trade, with the World Trade Organization forecasting a 0,2% decline in 2025.