New Delhi: A day after US President Donald Trump revealed plans to significantly lower tariffs on Chinese imports, China announced Wednesday that it was open to holding trade negotiations with Washington, indicating a potential thaw in the world’s two largest economies’ ongoing tariff war.
At a White House news conference Tuesday, Trump said that tariffs on China will “come down substantially, but it won’t be zero”. He expressed optimism about reaching a tariff agreement with China “pretty quickly”, highlighting the desire for amicable relations: “They’re gonna do very well, and I think they’re going to be happy, and we’re gonna live together very happily and ideally work together.”
Trump’s comments follow US Treasury Secretary Scott Bessent’s comment in a closed room meeting with investors Tuesday, where he reportedly said high tariffs were unsustainable and that he expected a “de-escalation” of the trade war between the two countries. Bessent had acknowledged, according to media reports, that formal negotiations with China were yet to commence, but noted that “neither side thinks the status quo is sustainable”.
On Wednesday, during a meeting with Azerbaijan President Ilham Aliyev in Beijing, Chinese President Xi Jinping said that tariff and trade wars undermine the legitimate rights and interests of all countries, hurt the multilateral trading system and impact the world economic order.
Additionally, foreign ministry spokesperson Guo Jiakun told media persons in Beijing, “China pointed out early on that there are no winners in tariff wars and trade wars.”
He added, “The door for talks is wide open.”
On 2 April, Trump marked “Liberation Day”, announcing tariffs on several countries, sending shockwaves through global markets. A tariff war has since been active between the US and China.
The conflict, which escalated with the imposition of reciprocal tariffs—145 percent by the US and 125 percent by China—has had several international institutions sounding alarm over far-reaching economic implications. The International Monetary Fund warned that these tariffs have caused a “major negative shock” to the global economy, leading to a downward revision of growth forecasts.
Trump’s decision to consider reducing tariffs marks a notable departure from his earlier stance. The proposed tariff reductions have been met with cautious optimism by the markets. The S&P 500 index rose by 2.5 percent to 5,287.76, following reports of Bessent’s comments, reflecting investor hopes for a resolution to the trade dispute.
The Indian markets too rallied Wednesday reacting to the positive news, with BSE Sensex breaching the 80,000 mark after a continued period of tension. Similarly, NSE Nifty opened at 24,353, but slid a little later to reach 24,303.5 during intra-day trade. It did, however, end the day in green.
(Edited by Mannat Chugh)
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