US-China Tariff Negotiations

The administration of US is reportedly considering a proposal to reduce tariffs on Chinese imports. This effort is aimed at easing tensions with Beijing.

Key Developments

• The tariff reduction would range between 50 per cent and 65 per cent, according to sources cited by news agency Reuters.
• This move is part of ongoing negotiations and not a unilateral decision by the US.
• A report by the Wall Street Journal indicated that the White House is actively discussing these tariff reductions with China.
• US President, since returning to office in January, has increased tariffs on Chinese goods to as high as 245 per cent.
• Several options are being considered, including a tiered system where non-sensitive items have lower rates, while strategic goods face high duties, potentially over 100 per cent.

Market Reaction

• The S&P 500 rose by 3.3 per cent, reaching a two-week high, fueled by hopes of tariff relief and US President's conciliatory remarks.
• US President indicated that current tariff levels "won't be that high," suggesting a possibility of substantially lower tariffs.
• He warned that if a deal isn't reached, the current terms may remain.

The White House has yet to officially comment on these developments.