The newspaper added that tariffs to China could be reduced to a range of between approximately 50% and 65%. A staggered approach is also being evaluated that would impose tariffs of 35% to products that the US does not consider a threat to national security, and levies of at least 100% to those who consider strategic for their interests.
American tariffs on Chinese products were raised earlier this month to a minimum of 145%, which caused retaliation by Beijing with 125% tariffs to US imports. The commercial dispute, which has emerged despite the fact that Trump ordered a 90 -day pause to elevated tariffs for most countries, has shaken financial markets and overshadowed the perspectives of companies.
However, on Tuesday the feeling of investors improved before signs that the White House could be softening its confrontational attitude in commercial negotiations with China.
Trump told reporters that American tariffs on China would decrease once an agreement is reached, although he noted that they would not fall to zero. The Secretary of the Treasury, Scott Besent, also said that although conversations with Beijing will be “arduas”, he believes that both countries can calm the growing commercial tensions.
The market response
The shares shoot this Wednesday in the face of hopes that commercial tensions between the US and China can be relieved soon, while President Donald Trump indicated that he does not plan to remove Jerome Powell from his position as president of the Federal Reserve.
The Dow Jones industrial average shoots 1,044 points, or 2.7%. The S&P 500 scale 3.2%, and the Nasdaq composite flies 4.1%.
The Wall Street Journal reported Wednesday, citing a White House official, that the administration was considering reducing tariffs to China to a range of between 50% and 65%. The news led the US indices to their session maximums.
The novelty comes after Trump said Tuesday that he is willing to adopt a less confrontational approach in commercial negotiations with China, and pointed out that the current 145% tariff on Chinese imports is “very high, and it will not be so high … no, it will not be even close to being so high. It will fall substantially. But it will not be zero.”
The actions with greater exposure to China that had fallen in recent weeks. This included the Titans of the “Magnificent Seven” group Apple and Nvidia, which rose 3% and 5%, respectively.
Tesla’s actions also rose 5%, driven by the decrease in tariff pressure and after CEO Elon Musk said during the call of results on Tuesday that his dedication to the Trump government efficiency department will be reduced “significantly” from next month.
Investors also breathed relieved when Trump said he has no “intention” to fire Powell, whose mandate as president of the Fed ends in May 2026. The comment represents a change of tone by the president, who until Monday had launched harsh criticism against Powell, qualifying him as a “great loser” and demanding a decrease in interest rates. Last week, he even wrote in Truth Social that Powell’s dismissal cannot come quick enough. “
The shares came from a positive session, in which the 30 components dow fired more than 1,000 points and ended a four -day run streak. Both the S&P 500 and the Nasdaq Composite rose more than 2%.
Source: Ambito
