The Blubber

U.S. President Donald Trump said tariffs on Chinese imports will be reduced “substantially” from the current 145% rate.

“It won’t be that high, not going to be that high,” Trump said during a press conference in the Oval Office on Tuesday.

He added that he believes a trade deal with China could be reached “pretty quickly,” and emphasized he isn’t looking to “play hardball” in negotiations.

“They’re going to do very well, and I think they’re going to be happy, and we’re going to live together very happily and ideally work together,” Trump said. “So I think it’s gonna work out very well.”

His remarks followed comments from U.S. Treasury Secretary Scott Bessent earlier Tuesday, in which Bessent called the current tariff standoff with China “unsustainable” and said he expects a “de-escalation” in the ongoing trade dispute between the world’s two largest economies.

Speaking privately at a JPMorgan Chase event in Washington, Bessent also noted that formal negotiations with China had not yet begun.

“I do say China is going to be a slog in terms of the negotiations,” Bessent said, according to a transcript obtained by the Associated Press. “Neither side thinks the status quo is sustainable.”