Trump Backtracks on China Tariffs After Economic Pressure Mounts

President Donald Trump is retreating from his hardline stance on Chinese tariffs, signaling a potential reduction from the staggering 145% rates he imposed just weeks ago. This U-turn comes as the International Monetary Fund issued stark warnings about his tariff policies dragging down both the US and global economies.

Despite previously boasting that tariffs would deliver a “golden age” of manufacturing prosperity, Trump is now softening his rhetoric, claiming tariffs will “come down substantially” while insisting “we’re doing fine with China.” 

This pivot suggests his administration is beginning to recognize the economic damage caused by what the IMF called the “highest import taxes in more than a century” — maybe. China did not show any signs it would back down from a trade war with Trump, going as far as warning other economies against making deals to “appease” the US.

Trump’s retreat follows Treasury Secretary Scott Bessert’s closed-door admission that the trade war is “not sustainable” and market turmoil that saw stocks plummet. Economists at JPMorgan Chase warned Trump’s policies could push both the US and global economies into recession while potentially doubling inflation to 5%.

Read: Trump’s Demand for ‘Preemptive Cuts’ Triggers Market Slide

On Chinese social media, Trump’s apparent backpedaling trended as “Trump chickened out” and “Trump admitted defeat,” according to reports — despite his claims of negotiating strength with Chinese President Xi Jinping.

While Trump insists he has a “very good relationship” with China, his erratic policymaking has already disrupted global supply chains, rattled financial markets, and stoked recession fears. The IMF predicts US growth will now fall to just 1.8% this year — a third lower than projected in January and well below global averages.

For a president who campaigned on negotiation prowess, the rapid retreat signals that his aggressive tariff strategy has failed to produce the concessions he promised from China, instead primarily harming American consumers and businesses. And, there aren’t as many trade deals as the administration hoped the tariffs would produce.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

US Energy Storage Costs Set to Spike Up to 50% as Trump Tariffs Hit Supply Chains

US energy storage costs could surge up to 50% as Trump tariffs target Chinese battery...

Friday, June 6, 2025, 02:59:00 PM

FCC Commissioner Urges US Government To Ban TikTok

Brendan Carr, one of the five commissioners at the Federal Communications Commission (FCC) is calling...

Wednesday, November 2, 2022, 05:14:00 PM

US Blocks Nvidia Exports to China Under Latest Retaliation

Nvidia (NASDAQ: NVDA) is caught in the middle of the US-China trade war after Washington...

Wednesday, April 16, 2025, 07:54:21 AM

Trump’s Accelerated Copper Tariff Threat Sends Prices Soaring

Tension is building across global metals markets as the Trump administration moves to impose copper...

Wednesday, March 26, 2025, 11:35:00 AM

Trump Open to Sending Prisoners to El Salvador

El Salvador offered last week to take custody of US prisoners and house them in...

Monday, February 10, 2025, 02:53:00 PM