The Trump administration would look at lowering tariffs on imported Chinese goods pending talks with Beijing, a source familiar with the matter said on Wednesday, adding that any action would be in conjunction with negotiations and not made unilaterally.
The source's comments followed a Wall Street Journal report, citing people familiar with the matter, that the White House is considering cutting its tariffs on Chinese imports in a bid to de-escalate tensions with Beijing.
China tariffs could come down to between 50% and 65%, the paper said, citing a White House official. President Donald Trump since returning to the White House in January has ramped up tariffs on Chinese imports to 145%.
Trump has not made a decision, the Journal said, adding that the discussions remain fluid and several options are on the table.
The White House did not immediately respond to a request for comment.
U.S. stocks extended their early session gains after the report. The market had opened sharply higher on a combination of relief among investors over comments from Trump late on Tuesday that were seen as constructive about the tariffs on China, and on Trump backing away from threats to fire the head of the Federal Reserve. The benchmark S&P 500 index was up 3.3% at a two-week high in mid-morning trading.
Trump said a deal would result in "substantially" lower tariffs on Chinese goods.
"It won't be that high," Trump said when asked about the current rates. "It won't be anywhere near that."
The Journal said the administration is also considering a tiered approach similar to one proposed by the House of Representatives committee on China late last year: 35% levies for items the U.S. deems not a threat to national security, and at least 100% for items deemed as strategic to America’s interest, some of the people said. That bill proposed phasing in those levies over five years.
