President Donald Trump has made a significant shift in the ongoing US-China trade war, proposing to reduce tariffs on Chinese imports from a steep 145% to 80%. The move, seen as a softening of his earlier hardline stance, comes amid growing pressure from financial markets and senior economic advisors, including Treasury Secretary Scott Bessent, who reportedly warned that the higher tariffs were “unsustainable.”
April's tariff escalation sparked intense market volatility and a swift retaliation from Beijing, which imposed 125% duties on U.S. goods. The tit-for-tat measures disrupted global supply chains and rattled investors. Trump’s latest proposal is widely interpreted as an attempt to de-escalate tensions ahead of pivotal trade negotiations with China scheduled for May 10.
In a flurry of posts on his social media platform Truth Social, Trump framed the 80% tariff as a potential middle ground, suggesting the rate could be lowered further depending on the outcome of talks. While maintaining that China must open its markets to U.S. businesses, he emphasized that Treasury Secretary Bessent would lead the trade delegation and make the final call on the tariff strategy.
The reduction hints at a strategic recalibration rather than a full policy reversal. Trump, known for his unpredictable negotiating tactics, appears to be balancing domestic economic stability with his confrontational approach to China.
Meanwhile, the proposed tariff adjustments have had little impact on Bitcoin’s explosive growth. The cryptocurrency surged past $100,000 on Thursday, undeterred by trade war headlines. Market analysts suggest that easing trade tensions could further stabilize financial conditions, potentially giving Bitcoin additional momentum. However, if negotiations falter, renewed volatility could ripple across global markets, including crypto.
All eyes now turn to Saturday’s talks, where the U.S. and China will test whether this softening in tone can translate into tangible progress—or if it’s just another twist in a prolonged trade standoff.
