In an interview on NBC’s Meet the Press with Kristen Welker that aired this past Sunday, President Donald Trump said he is willing to lower tariffs on China “at some point.”
- Tariffs placed on imports from China – a source of many promotional products – are currently at 145%.
- China has retaliated with tariffs of 125% on American imports.
- The president also signed an order eliminating duty-free de minimis treatment for low-value imports from China and Hong Kong, effective May 2.
The escalating duties have roiled markets and have already driven up prices in the promotional products industry – and threaten to drive up prices for affordable clothing and toys popular with American consumers.
“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 told Welker during the wide-ranging, hourlong interview, in which he also commented on TikTok, Canada and other issues.
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Chinese factory activity and export orders have decreased in recent months. A key manufacturing purchasing managers’ index shows that new orders growth in China reached a seven-month low in April amid a renewed decline in foreign sales, driven by higher U.S. tariffs.
China has denied claims that talks were already underway but indicated that Beijing is assessing the possibility of trade talks. Later on Sunday, Trump told reporters aboard Air Force One that he has no plans to speak to Chinese leader Xi Jinping this week.
Tariffs Beyond China
The Trump administration is currently engaged in trade negotiations with numerous countries as a part of its reciprocal tariff regime. So far, the U.S. has reportedly initiated discussions with over 75 countries during a 90-day pause on global reciprocal tariffs, lowering the import fees to 10% for most countries. Each of those countries could see their individual tariffs raised significantly when the pause ends in June.
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With respect to Canada and Mexico, existing fentanyl and migration-related tariffs remain in effect, although goods compliant with the United States-Mexico-Canada Agreement of 2020 are exempt.
- Non-USMCA goods face a 25% or 10% tariff, depending on classification.
- If the current orders are terminated, non-USMCA goods would face a 12% tariff while USMCA goods remain preferentially treated, according to the White House.
On Sunday, Trump also told Welker that he is eager to negotiate but wouldn’t completely eliminate all tariffs, “because if somebody thought they were going to come off the table, why would they build in the United States?”
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