Trump tariffs on China to be lowered: US President

Key Announcements

President Trump announced plans to lower tariffs on Chinese goods, with the aim of facilitating ongoing negotiations. The new tariff baseline would be 10% for 90 days, allowing for further discussion. He also retracted previous threats to fire Federal Reserve Chairman Jerome Powell.

Negotiation Details

The deal will be crafted by Trump, Bessent, and Commerce Secretary Lutnick. While Trump did not explicitly mention Peter Navarro, other individuals will reportedly be involved in the negotiations. No timeline for the negotiations was provided.

Economic Impacts

The IMF noted significant global economic slowdown due to Trump's tariffs, including a drop in US growth forecasts from 2.7% to 1.8%, and a reduction in Australia's projected growth. The IMF, however, did not forecast a US recession.

Further Points

• Bessent acknowledged the unsustainable nature of the trade war with China at a JPMorgan Chase meeting.
• The reduction in the US growth forecast attributed to tariffs is relatively small.