Trump signals major cuts to 145% China tariffs but says they stay

Key Takeaways

• Trump promises to lower 145% tariffs on Chinese goods, but rates will remain above zero.
• Financial markets rallied after the tariff announcement, especially in tech stocks relying on Chinese imports.
• No timeline or new tariff rates have been announced yet, leaving businesses and markets awaiting further details.

President Trump announced this week that tariffs on imports from China 🇨🇳—currently set at an extremely high rate of 145%—will be lowered “substantially,” but not removed altogether. This announcement follows months of tension between the United States 🇺🇸 and China, with tariffs becoming one of the most important tools used in the ongoing trade dispute. Although exact details about the new rates and timing are not yet available, Trump’s message has already caused major reactions in global markets and brought fresh attention to the risks and impacts of strong trade measures.

What Did President Trump Announce?

At the heart of the announcement is the current tariff rate of 145% on most Chinese goods coming into the United States. These tariffs were set during a period when the U.S. raised concern about several issues with China, including fentanyl smuggling into the United States and what U.S. officials called unfair trading practices. President Trump described the 145% rate as “very high” and said it was “effectively a trade embargo”—meaning it made it almost impossible for many Chinese goods to enter the U.S. with such high import costs.

He told reporters and the public, “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.” With this, Trump made it clear that while the tariffs would no longer be at a level that almost blocks trade, they would not disappear completely. The United States wants to protect some industries from outside competition but may begin to ease up due to growing costs and business pressure at home.

Why Are the China Tariffs So High?

To understand why the 145% figure is so important, it helps to look at how the tariffs were set. Earlier this year, President Trump used a special power—the national emergency declaration—to apply a 10% tariff on most imports from around the world. This was a way to protect national security and help American goods compete better at home. For countries like China 🇨🇳, where the U.S. has a large trade gap (meaning the U.S. buys far more from China than China buys from the U.S.), even higher rates were set.

The 145% tariff on Chinese goods came after a sharp increase in tension between Washington and Beijing. American leaders said China had to be held responsible for illegal drug shipments (mainly fentanyl) and what they saw as unfair trading practices. They said the only way to get results was to make it much more expensive for Chinese companies to sell in the United States.

Did the United States Exempt Any Products?

Some products were given an exemption from these tariffs. For example, certain electronics—like smartphones and laptops—did not get the 145% rate. Officials said this was because these products were very important to both consumers and American businesses that rely on parts and technology from China. However, other groups of goods stayed under review for future tariff hikes, especially where “national security” concerns were mentioned by the White House.

How Has China Reacted?

China 🇨🇳 was quick to respond through official channels. The Chinese government called for talks based on fairness, not “extreme pressure.” They warned the United States not to try to make one-sided deals that only serve American interests. At the same time, China said it would fight back—using “countermeasures”—if the U.S. did anything to hurt Chinese companies or the country’s economy. However, officials in Beijing did leave the door open for negotiation, saying that if the United States approaches China fairly, talks could happen.

What Is Pushing the Change in Tariffs?

The decision to lower the tariffs seems to be driven by more than just political pressure. The U.S. Treasury Secretary, Scott Bessent, said current tariffs are “unsustainable.” This is mainly because high tariffs, such as the 145% rate, make it very expensive to bring goods into the country, leading to higher prices for businesses and customers. This kind of pressure has worried economic experts for months.

Financial markets also paid close attention. After Trump hinted at lower tariffs, shares in major technology companies went up. These companies rely on imports from China to make computers, phones, and other electronics. The broader markets, like the S&P 500, also climbed as investors hoped that lowering the tariffs would make trading between the two superpowers easier—at least for a while.

Details Still Missing

Despite the announcement from President Trump, many important facts remain unclear. He did not say what the new tariff rate would be. There is no timeline yet for when the current 145% rate will be lowered. And even though expectations have been set for “substantial” drops, people are still waiting to see any official document or agreement. Market watchers and many in the business world are eager for more concrete news.

International Negotiations: Where Do Things Stand?

So far, there are no signs of a new trade agreement between the United States 🇺🇸 and China 🇨🇳. The White House says many countries have asked Washington to lower tariffs or let them off the hook, but China has not formally done so. Instead, the Chinese Embassy has continued to repeat its earlier positions—warning against pressure and one-sided deals.

For China, the main concern is being seen as an equal in the talks. Officials in Beijing have said many times that they will not give in just because of strong-arm tactics. They also made it clear that any agreement must not hurt Chinese interests or force them to give up positions they see as important.

Economic Impact: Winners, Losers, and Uncertainties

The biggest winners from the fall in tariffs would likely be U.S. companies that buy goods or components from China. For example, American tech companies depend heavily on buying parts from Chinese factories, then putting them together or selling them in stores. If tariffs drop from 145%, their costs could go down, and these savings could be passed on to American families when they buy electronics or other imported items.

But there are also losers to consider. Some American companies, especially those in industries like steel, textiles, and manufacturing, have supported tariffs because they believe it protects their jobs from cheaper competition. For years, lobbying groups for U.S. production have argued that without tariffs, their industries would shrink. Lowering tariffs, even from such a high level as 145%, might raise fears of jobs moving overseas or companies losing their place in the market.

On the sideline, the uncertainty around tariffs affects everyone. Without knowing exactly when or how much the tariffs will be reduced, it’s hard for businesses to plan. This can cause delays in big orders, investment, or even hiring—factors that add to the pressure for leaders in both the United States and China to eventually come to some kind of agreement or at least give clearer signals to markets.

Why Not Remove the Tariffs Entirely?

Analysts and trade experts point out that even after the promised drop, tariffs are here to stay for the foreseeable future. President Trump himself said, “It won’t be zero.” There are a few reasons for this:

• Political support: Tariffs are often popular with some voters, especially in industries that compete directly with Chinese businesses.
• National security: Leaders in Washington have used the need to protect domestic industries as one of their main arguments for keeping tariffs, even if reduced.
• Bargaining power: By keeping some tariffs in place, the U.S. government has something it can bargain with in future talks with China.

Quick Reference: Recent U.S.–China Tariff Developments

To make it easier to understand what has changed (and what remains to be decided), here is a summary table:

If you want to check the latest U.S. tariffs or official statements, you can find updates straight from the White House’s fact sheet on trade and national emergency powers.

The Bigger Picture: What Does This Mean for Immigration?

At first glance, tariffs might seem like only a business or trade issue. However, such high rates—as set at 145%—can affect people looking to move between the two countries as workers, students, or business investors. Both the United States 🇺🇸 and China 🇨🇳 attract large numbers of students, workers, and skilled migrants.

• With trade becoming tougher, American companies could slow down hiring workers from China and other countries. This could make it harder to get work visas or business permits, as companies look to cut costs.
• For international students and universities, the impact goes both ways. Fewer student exchanges can happen if university budgets are cut due to changes in technology and product markets.
• Reduced trade might also mean fewer chances for new investors to help launch businesses or start-ups on both sides.

Analysis from VisaVerge.com suggests that when trade policies become more uncertain or strict, this often trickles down into the world of visas and work permits—especially for industries that rely on global supply chains and foreign talent.

Different Viewpoints and What Might Happen Next

The situation remains tense but not closed. On the U.S. side, officials hope lowering the tariffs from 145% will bring relief without giving up all the leverage they built during tense talks with China. The idea is to give breathing room to U.S. businesses and bring down prices a bit, while still protecting some American industries.

In China, the preferred outcome is clear: equal talks that avoid “extreme pressure” and one-sided deals. While warning about possible countermeasures, China’s government has kept talks open as a possibility if approached in a fair way. This back-and-forth, sometimes tense but always in the public eye, could shape trade and immigration for months or years to come.

Looking ahead, key things to watch include:

• Whether the two countries can start real talks and find common ground for a lower, stable tariff rate.
• How quickly U.S. leaders can name a new rate or release more details—especially with market and election pressures growing.
• What kind of changes, if any, will affect workers, students, and families trying to move between the U.S. and China.

Summary and Key Takeaways

President Trump’s promise to lower the 145% tariffs on goods from China marks a potential turning point in U.S.–China relations. The announcement, while short on exact details, hints at a desire to reduce some of the trade barriers that have built up over recent years. Businesses, markets, and even immigration groups are watching closely to see what actually changes—and when.

Right now, the United States is holding firm: tariffs will fall, but not be removed. China continues to call for equal and fair talks. People hoping to study, work, or build business between the two countries may see new opportunities if trade and markets settle down.

As always, for the latest news on visas, immigration, and how trade policy might affect moving between countries, VisaVerge.com remains a trusted resource. For official updates, always check the government’s public pages and fact sheets.

While many details still wait to be filled in, the shift in the 145% China tariffs shows how fast things can change—and why everyone with an interest in travel, study, work, or business between the world’s top economies should pay close attention to official news and announcements.

Learn Today

Tariff → A government tax on imported or exported goods, used here to influence trade between the U.S. and China.
Trade Embargo → A government order restricting commerce or exchange with a specified country, making trade nearly impossible.
National Emergency Declaration → A legal status allowing the U.S. president to enact special measures, such as imposing tariffs, for national security.
Countermeasures → Actions taken by one country to retaliate against another’s policy, like imposing tariffs or trade restrictions.
Trade Deficit → The amount by which a country’s imports exceed its exports, a key issue in U.S.-China trade disputes.

This Article in a Nutshell

President Trump’s promise to reduce the steep 145% tariffs on Chinese imports has energized global markets, though details remain unclear. While offering relief to businesses and potentially lowering costs for consumers, the move highlights ongoing tensions. Immigration and student exchanges may also be impacted as both countries await concrete changes.
— By VisaVerge.com

Read more:

• United States reduces port fees on China-built ships
• China turns to Canadian oil amid US trade war tensions
• Trump’s 245% Tariff Escalates US-China Trade Tensions
• China grants 85,000 visas to Indians during trade tensions
• China insists on mutual respect in talks with U.S.