Wall Street gathers for the second day, hoping to break away from trade tensions between the two biggest economies in the world.
President Donald Trump reiterated his intention to lower crippling tariffs on China, but argued that the timeline of relief relies on Beijing.
Speaking to White House reporters on Wednesday, Trump said he could announce new tariff rates for US trading partners, including China, over the coming weeks, depending on the outcome of administration negotiations with other countries.
“It depends on them. We have a situation where we have a very wonderful place. It’s called the United States and has been stripped for years,” Trump said when asked how quickly he could reduce the 145% tariff he imposed on most Chinese goods.
“The ultimately thing I think will happen is that we do a lot of business. By the way, if we don’t have a business with the company or country, we’re going to set up tariffs.”
Trump said it was “very well” with Chinese President Xi Jinping, and he hoped the side would reach the deal.
“If not, we’ll set a price,” Trump said.
Asked on Wednesday if his administration was “active” with China, Trump said, “Active. Everything is active. Everyone wants to be part of what we’re doing.”
Trump’s comments came when Wall Street recovered for the second day in a row, hoping that Washington and Beijing would dismantle tensions that spiraled into an effective trade embargo between the two biggest economies in the world.
The Benchmark S&P 500 closed 1.67% on Wednesday, but the high-tech NASDAQ composite rose 2.50%, spurring comments the previous day that US Treasury Department’s Scott Bescent trade was “unsustainable.”
On Wednesday, the Wall Street Journal reported that the Trump administration is considering cutting tariffs on Chinese goods by 50-60% to reduce tensions.
The report cites people familiar with the issue, saying Trump is considering many options to ease his duties, but hopes that Beijing will lower 125 tariffs on US goods.
On Tuesday, Trump publicly admitted that his 145% tariffs on China were “very high” and said at one point it would “reduce a significant drop.”
China has opposed protectionist measures such as tariffs, but said it is being prepared to “fight to the end” if the US continues to escalate trade salvos.
“We have made it very clear that China is not looking for war, but we are not afraid of it, we will fight.
“If the US wants to speak, our doors are open. If the negotiated solution is what the US wants, it should stop China’s threats and threats and seek dialogue based on equality, respect and mutual interest.”
The US-China trade war caused fears about a global economic slowdown, with the International Monetary Fund cutting its 2025 growth forecast from 3.3% to 2.8% earlier this week.
On Wednesday, a group of 12 US states, including Arizona, Colorado, Connecticut, Illinois and New York, filed a lawsuit challenging Trump’s authority to impose tariffs without US Congress’ approval.
In a lawsuit filed in the U.S. International Trade Court in New York, the state said Trump “overturned the constitutional order and caused chaos in the American economy.”
“President Trump’s insane tariff scheme is not only economically reckless, but also illegal,” Arizona Attorney General Chris Mays said in a statement.
“Arizona cannot afford President Trump’s massive tax hike. Whatever the White House claims, tariffs are taxes that will be passed on to Arizona consumers.”
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