Trump says he's ready to lower tariffs on China

After months of tug-of-war between the United States and China, the tariff conflict between the two of the world's largest economies might be nearing its end. Because China is the biggest producer of electronic devices for global brands like Apple and Samsung, the upcoming turn of events will significantly impact American consumers.

In an interview that aired Sunday on NBC's Meet the Press with Kristen Welker, US President Donald Trump said he's willing to lower tariffs on China "at some point." Trump added that the tariffs are so high that the United States and China have stopped doing business together.

"At some point, I'm going to lower them because otherwise, you could never do business with them, and they want to do business very much," Trump said. Imports from China to the US are susceptible to a whopping 145% tax, while China has imposed a 125% tax on imported goods and products from the US.

Trump also mentioned the impact of US tariffs on China's economy and the pain China's factories are experiencing. The April official Manufacturing Purchasing Managers' Index (PMI) shows that China's factory activity slipped into the worst contraction since December 2023. New export orders also fell to the lowest level since December 2022.

This is the second time Donald Trump has signaled a desire to lower tariffs on China. A few weeks ago, He said tariffs on China would "come down substantially." However, he noted that tariffs wouldn't be zero. In the latest interview, Trump said he wants to reach a "fair" deal with China.

The prospect of lowering tariffs on China brings a ray of hope for both American consumers and companies. With most American companies heavily reliant on overseas manufacturers, particularly in China, a reduction in tariffs could mean significant relief from the anticipated price hikes. More importantly, for the tech community, the cost of electronic devices like smartphones and computers may not soar to unprecedented levels in the US.

Via: Bloomberg, Image by @realDonaldTrump on X