“New York Post”: The US is considering drastically reducing tariffs on China to 50%, which will take effect as early as next week

The Zhitong Finance App learned that according to the “New York Post” on Thursday, citing anonymous sources, the Trump administration is considering cutting the 145% tariffs imposed on imported Chinese goods by more than half, which will take effect as early as next week when senior Chinese and US officials are about to go to Switzerland to begin high-level trade negotiations. Sources revealed that US officials are discussing a proposal to reduce the punitive tariffs imposed by President Trump on Chinese goods to between 50% and 54%.

The source commented on the tariff adjustment plan, saying, “They plan to reduce tariffs on China to 50% during negotiations,” while adding that the US also plans to cut trade tariffs on neighboring South Asian countries to 25%.

In response, the White House refuted that the report was pure speculation. A White House spokesperson said, “Tariff-related decisions will be made by the President himself; other claims are unfounded.”

It is worth mentioning that just on Thursday, when announcing a trade agreement with Britain at the White House, Trump said that tariffs on China “will definitely be lowered.” He told reporters: “The tariff is now 145%, so a downward adjustment is imperative. I think our future relationship will be very good.”

Insiders pointed out that reducing tariffs to the 50% - 54% range is in line with the tax rates Trump discussed during a meeting with the executives of the three major US retailers last month. US Treasury Secretary Scott Bessent said bluntly this week that the current three-digit tariff level is “unsustainable.”

According to reports, Walmart CEO Doug Macmillan, Target CEO Brian Connell, and Home Depot CEO Ted Decker all said that the April 21 meeting at the White House was “very productive,” but no specific details were revealed.

Since 80% of the toys in the US market are produced in China, the toy industry will bear the brunt of the tariff war. Jay Foreman, CEO of Basic Fun, which is the main toy business, revealed that the market quickly became popular after the conference. “The ideal tax rate for Chinese products to successfully enter the US market is 54%.” The company's retro toys such as the Tonka truck, Little Bear, and My Little Pony are all made in China.

Forman told the New York Post: “The signal we are getting is that the tariff adjustments will be implemented as soon as this week or next.” He also added that many retailers have begun requiring suppliers to quote at different tariff rates of 10% to 54% “so that the goods can be quickly priced when they arrive in port.”

Rumors in the retail industry are also spreading rapidly. Retail executives pointed out that although the 50% tariff is drastically reduced from the current tax rate, it will still present huge challenges for retailers as they prepare for the critical holiday shopping season, which may lead to a sharp rise in product prices. For example, the Tonka heavy duty dump truck toy, which is priced at $29.99 this week, will rise to $49.99 if the tariff is adjusted to 54%.

Forman believes that this price is “acceptable,” but if the 145% tariff is maintained, the truck price will soar to $79.99, “too expensive,” and sales will almost stagnate.

White House spokesman Kush Desai responded in a statement: “Tariff decisions will be made personally by the President; all other claims are nonsense.” However, a source revealed to the “New York Post” that “Bezent's statement at the Milken Institute conference gave business executives a reassurance pill,” and everyone realized that “a trade agreement is expected to be reached.” Furthermore, sources also said that Southeast Asian countries are scrambling to reach an agreement with the US, and the Ministry of Finance's phone call was almost blown up.