On Tuesday, former U.S. President Donald Trump stunned markets and policymakers alike by suggesting tariffs on Chinese imports could come down significantly, signaling a potential softening in his longstanding hardline approach to trade relations between Washington and Beijing.
At a business summit in New York, President Trump made statements suggesting a major reduction of tariffs against China – possibly even their elimination in certain sectors – at his presidency, sparking years-long trade tensions between them. These comments stand in stark contrast to his aggressive tariff policies which had started the trade war between them during that period.
While President Donald Trump did not formally reverse any policy decisions during his address on Thursday night, his remarks have already caused an uproar among analysts, investors and political observers alike. Markets responded positively with the Dow Jones Industrial Average climbing over 300 points within minutes after his speech.
China’s Ministry of Commerce cautiously welcomed the statement, calling it a positive step toward rebalancing economic ties, and expressed openness for further dialogue. They stressed the importance of mutual respect and win-win cooperation when setting future trade arrangements in their statement released early Wednesday Beijing time.
Trump’s softened tone seems to reflect rising pressure from American businesses that have felt the pinch from tariffs on imports ranging from electronics to agriculture products. Many industry leaders have warned that prolonged trade tensions could harm U.S. competitiveness and consumer prices.
Political analysts suggest Trump’s comments are intended to broaden his support among moderate voters and business professionals ahead of the 2026 midterms. “This could be used strategically by him to widen his support base,” noted Dr. Elaine Parker of Georgetown University’s political economy department.
Conservative lawmakers and former Trump administration officials voiced reservations over any such move. “We spent years holding China accountable – rollback tariffs without concessions would be an enormous mistake!” tweeted former trade advisor Peter Navarro.
As speculation builds about Trump’s next moves, Beijing and Washington will closely observe him. Whether this signals an actual policy shift or just calculated political maneuvering remains to be seen; nevertheless, its global economic consequences could be significant.