Trump Hints at Lower China Tariffs, Markets Surge

Global markets surged after US President Donald Trump signalled a softer approach on trade tariffs and confirmed he has “no intention of firing” Federal Reserve Chair Jerome Powell, BBC reported.

Speaking in the Oval Office, Trump said tariffs on Chinese imports would “come down substantially, but it won’t be zero”. He also described future talks with China as “very nice” in tone. This has raised hopes of progress in the long-running trade dispute.

The president’s comments mark a shift from his previous confrontational stance. Trump had imposed tariffs as high as 145% on Chinese goods in a bid to bring jobs back to the US. But with reciprocal action from Beijing and economic uncertainty mounting, markets welcomed signs of a thaw.

Asian stock indexes reacted positively, with Japan’s Nikkei up 1.9% and Hong Kong’s Hang Seng rising 2.2%. US markets also rallied, with the S&P 500 climbing 2.5% on Tuesday.

The International Monetary Fund (IMF) warned this week that global growth is slowing due to tariff uncertainty. China has yet to officially respond, but state media suggested the US may now realise the damage caused by the trade war.