Scenarios for US Tariffs on Chinese Imports Ranging from 35% to 65%

Facing new warnings from financial markets, businesses, and top advisors, President Trump has toned down his attacks on Federal Reserve chief Jerome Powell and China, with reports suggesting he is considering tariffs of 35%-65% depending on the imported product (instead of 145%). Trump became president aiming to reshape the global economy. However, his decisiveness seemed to waver amid market turmoil in stocks and bonds, along with calls from influential figures who fear his tariffs and interference with the U.S. Federal Reserve could trigger an economic disaster. On Tuesday (April 22, 2025), Trump stated he has no intention of firing Powell and mentioned that a deal with Beijing could significantly reduce the punitive tariffs imposed on Chinese goods. Following reports that the U.S. might impose gradually lighter tariffs over five years, Trump told reporters that China would be ‘delighted’ once negotiations settle. The shift reassured investors who had fueled a week-long sell-off. The S&P 500 rose by 1.7%, though it trimmed earlier gains of up to 3.4%. Despite this, Trump’s aggressive stance underscores how markets and the economy remain beholden to the whims of the American president, signaling more turbulence ahead. On April 22, Trump said he’d be willing to substantially lower the 145% tariffs on China. He softened his rhetoric after meeting with executives from Walmart, Home Depot, and Target, who warned import taxes could disrupt supply chains and raise prices. Bloomberg reported that warnings about empty store shelves within weeks resonated with Trump. ‘We’ll have a fair deal with China,’ Trump told reporters on Wednesday, April 23, 2025. Later, Trump considered announcing tariff rates for countries, including China, within the next two to three weeks. The deadline will ultimately depend on China’s commitment, according to Trump. Meanwhile, government officials are reportedly examining plans to reduce tariffs on Chinese imports. Proposals suggest a tiered approach, cutting rates between 35% and 65% for non-critical items and imposing 100% on critical ones, phased over five years. While Trump is known for changing his mind, any offer may aim to coax China back to the negotiating table without action in talks, a White House official stated. Treasury Secretary Scott Bessen reiterated that the U.S. does not intend unilateral tariff reductions and that a full trade agreement could take two to three years. Press Secretary Caroline Levi emphasized there would be no unilateral tariff reduction against China, stating that a deal with the U.S. is necessary and optimistic it will happen. When asked whom the president consults on trade policy, Bessen revealed Trump frequently seeks input from business leaders, citing meetings with major retailers and German automakers.