Trump's U-turn: Softening of tariff war on China, trade talks to begin soon, will global tensions end?

Washington: US President Donald Trump has made a big announcement by taking a soft stand in the ongoing tariff war with China (US-China Trade War). Trump said at the White House on April 22, 2025 that the 145% tariff imposed on China (China Tariffs) will be "substantially reduced, but it will not be zero." The statement came after Treasury Secretary Scott Bessent's comment, in which he described the tariffs as "untenable" and expressed hope for a reduction in the trade war between the two countries. #TrumpChinaDeal and #TradeWar2025 are trending on X, and global markets saw a surge due to this news. Let us understand Trump's stance and its effects with facts.

Trump's new stance: What changed?

On April 22, Trump said, "We are going to make a great deal with China. Nobody can compete with us." This statement is a reversal from his previous tough stance, when he imposed 54% tariffs (20% already in place + 34% additional) on China on April 2 and 125% tariffs on April 9. According to a Reuters report on April 18, Trump indicated that the two countries are close to starting negotiations, although he has not yet had a direct conversation with Chinese President Xi Jinping.

The reason for Trump's change in stance is believed to be the instability of global markets and economic warnings. According to a New York Times report on April 15, Trump's tariffs affected other negotiations with China on issues such as Taiwan, fentanyl, and TikTok. A Bloomberg report on April 23 said that warnings from financial markets, traders, and advisors forced Trump to adopt a softer stance.

Background of the tariff war

Trump imposed 20% tariffs as soon as he began his second term, which was later increased to 145%. In response, China imposed 125% tariffs on US goods and restrictions on exports of rare earths. This rattled global markets, and the S&P 500 fell 15%. The tariffs will cost US households an average of $1,300 extra in 2025.

China initially took a tough stance. “We do not want a trade war, but we are not afraid of one either,” Foreign Ministry spokesman Lin Jian said on April 16. However, China has now appointed a new trade negotiator, Li Chenggang, indicating the start of talks with the Trump administration.

Possibility of trade talks

Trump has claimed to have started trade talks with more than 75 countries, but the talks with China are the most complex. According to a Politico report dated April 16, Trump's strategy was to isolate China by making deals with other countries so that it is forced to negotiate. "The ball is now in China's court," White House spokeswoman Caroline Levitt said.

However, China has warned other countries that making deals with the US could harm their interests. According to an Al Jazeera report dated April 22, China is taking advantage of its position in global trade, as 70% of countries have more trade with China than with the US.

Global and Indian impact

Trump's soft stance brought relief to global markets. On April 23, the S&P 500 rose 3% and the Nasdaq rose 4.2%. This is positive for India, as India and the US set a target in February 2025 to increase bilateral trade to $500 billion by 2030. However, due to the tariff war, India is also subject to a 27% tariff, which is still under negotiation.

Reaction of the public and experts

People on X are praising Trump's stance.@indiatvnews wrote, "Trump expressed confidence in a deal with China." Experts believe that this move can reduce global recession fears. JP Morgan CEO Jamie Dimon said, "Negotiations should begin immediately."

Conclusion

Trump's soft stance towards China and the announcement of trade talks is a relief news for the global economy. However, the possibility of complete removal of 145% tariffs is low, and China's conditions may complicate the talks. Will this war end, or is it just a temporary relief? The answer will be known in the coming weeks. This is an opportunity for countries like India to strengthen their trade strategy.