The source’s comments came after a report from the Wall Street Journal and quoted opinions from people familiar with the matter that the White House is considering cutting tariffs on Chinese imports to ease tensions with Beijing.
The report said China’s tariffs could drop to 50% to 65%, citing White House officials as a reason. President Donald Trump has raised tariffs on Chinese imports to 145% since returning to the White House in January.
The journal said Trump hasn’t made a decision yet, adding that the discussion is still liquid and there are several options.
The White House did not immediately respond to a request for comment.
After the report, U.S. stocks extended their early meetings. The market is open to a lot due to the combination of relief from investors’ comments about Trump late Tuesday, which are seen as constructive of Chinese tariffs, and Trump backed off threats to fire the Fed’s head. The S&P 500 rose 3.3% at a two-week height in morning trading. Trump said on Tuesday that he would make progress in China, which would greatly reduce its import tax rate, but also warned: “If they don’t reach an agreement, we will reach an agreement.” Trump said that reaching an agreement would “significantly reduce” tariffs on Chinese goods.
When asked about the current interest rates, Trump said: “It won’t be that high.”
The magazine said the administration also considered a stratification approach similar to the one proposed by the Chinese House Committee: The U.S. believes that the U.S. threat to national security is not a 35% tax on items of interest in the U.S., some of whom said. The bill proposes phase-out of these taxes within five years.
