Trump’s team signals further tariff rollbacks
Following Tuesday's signals that the White House is rethinking tariffs, Trump’s team gave further indications of cold feet on Wednesday.
- The Financial Times reported that Trump plans to exempt Chinese-made car parts from tariffs.
- Additionally, on Wednesday US Treasury Secretary Scott Bessent said that tariffs between the US and China would need to be reduced before negotiations could take place, but Trump wouldn't make the first move (Reuters).
Trump himself reiterated openness to reducing tariffs on China, but said "it depends on China how soon the tariffs can come down" (ABC).
The plot thickens: On Wednesday, China's Foreign Ministry labelled Trump's claim – made last week – that Chinese officials have reached out to Washington to discuss trade issues as "fake news" (SCMP).
Get smart: Beijing wants to strike a deal, but Trump’s ongoing retreat from his massive trade war escalation means his Chinese interlocutors are in no rush to negotiate.
But, but, but: If China lets Trump twist in the wind for too long, they risk angering him.
- A vengeful Trump could sour on negotiations and bring other economic weapons to bear on China.
What we’re watching: Senior Chinese finance officials are in Washington this week for the Spring World Bank and International Monetary Fund meetings.
- Will either side take the initiative to reach out to the other?