US reportedly seeks negotiations with China over 145% Trump tariffs

The United States has reportedly approached China to initiate discussions surrounding the 145% tariffs imposed under the Trump administration. According to sources cited on Yuyuan Tantian, a Chinese state media-affiliated social media platform, American officials have been actively reaching out through various channels to open a dialogue on the contentious issue.

Key figures such as US Treasury Secretary Scott Bessent and White House economic adviser Kevin Hassett have expressed optimism about a potential resolution. In recent remarks, Hassett highlighted signs that China might be willing to ease trade tensions, pointing to Beijing’s recent reduction of duties on certain American goods, including pharmaceuticals, microchips, and jet engines.

While the Trump administration’s tariffs have heavily impacted Chinese exports, Beijing has remained defiant. Chinese officials have criticised the measures as economic coercion, refusing to engage in talks unless discussions are rooted in equality, respect, and mutual benefit. A source from China’s foreign ministry described yielding to these tariffs as akin to “drinking poison,” further demonstrating their reservation to concede under pressure.

However, the economic strain on China is significant. Nomura Securities estimates that a 50% decline in exports to the US could lead to 16 million job losses in China. Factories and key industries dependent on international trade with the US are already experiencing disruptions, particularly as the holiday retail season approaches. American officials believe this economic pressure could push Beijing to the negotiating table.

In an effort to de-escalate tensions, early-stage discussions may focus on revisiting promises made under the 2020 “Phase 1” trade agreement. This deal initially committed China to increasing its purchases of US-made goods and services by $200bn annually over two years but was largely disrupted by the Covid-19 pandemic. Revised negotiations are expected to cover other points of contention, such as non-tariff barriers and intellectual property concerns, which Bessent described as “insidious” issues derailing trade relations.

Though there has been no confirmation from Beijing regarding these talks, the US remains optimistic about a phased resolution. Analysts note that Beijing’s willingness to participate may depend on Washington’s ability to signal genuine intentions for compromise. For now, high tariffs on both sides remain a sticking point, with economists warning of long-term economic consequences if no progress is made.