Amid signs of renewed trade tensions between the United States and China, U.S. President Donald Trump made a surprising statement, announcing that Washington will implement significant tariff reductions on Chinese goods—but emphasized that tariffs will “never go down to zero.”

The announcement was made during a press briefing at the White House on April 22, as part of an effort to ease international concerns and maintain leverage in negotiations, while both of the world’s largest economies continue to face pressure from ongoing tariff measures.

A Soothing Message, But Strategic Leverage Remains

President Donald Trump recently called the current 145% tariff rate on Chinese goods “very high” and confirmed it “will be significantly reduced”—but made it clear that tariffs will “never go down to 0%.”

“Ultimately, they have to make a deal, because otherwise they're not going to be able to deal in the United States, and we want them involved, but they have to, and other countries have to make a deal, and if they don't make a deal, we'll set the deal.”— Donald Trump

His remarks appear to be a strategic softening of tone, signaling an openness to renewed negotiations with Beijing—without giving up the powerful leverage of record-breaking tariffs in U.S.–China trade history.

China Remains the Central Focus

Earlier in April, the Trump administration imposed 145% tariffs on a broad range of Chinese goods, with some items taxed up to 245%. In response, China slapped 125% retaliatory tariffs on U.S. exports, raising fears of a trade war even more intense than during Trump’s first term.

Meanwhile, the U.S. granted a 90-day delay on reciprocal tariffs for most other trade partners, maintaining a base rate of 10%. This clearly signals that China is the primary target of Washington’s new trade strategy.

Beijing's Position: Firm Yet Open to Dialogue

China’s Ambassador to the U.S., Xie Feng, recently stated:

“Likewise, the earth is big enough to accommodate both China and the U.S.," he said. "We should pursue peaceful coexistence rather than collide head-on, and help each other succeed rather than get caught in a lose-lose scenario.”

Beijing has made clear its strong opposition to any form of trade war, but remains open to negotiation—if talks are based on equality and mutual respect.

China’s requests to Washington include:

• A consistent and predictable trade stance

• Respect for diplomatic norms

• Addressing concerns related to Taiwan and U.S. sanctions

• Appointing a clearly authorized negotiator with backing from President Trump

Strategic Leverage or Opening Move?

Trump’s message—tariff reductions without a return to zero—reflects a multi-layered strategy:

• Sending a positive signal to Beijing and global stakeholders that the U.S. is willing to adjust policies

• Retaining negotiating leverage by keeping tariffs as a bargaining chip

U.S. Treasury Secretary Scott Bessent also admitted that the current tariff levels are “unsustainable,” expressing hope for a reasonable path toward de-escalation.

Global Reactions and Uncertain Outcomes

It remains unclear whether U.S.–China negotiations will resume following these statements. The White House confirmed it has received 18 formal requests for talks from different countries—showing how closely global partners are watching each move from Washington.

Export-heavy industries—especially in electronics, EVs, renewables, and industrial equipment—are now facing immense pressure to restructure supply chains and craft long-term mitigation strategies.

Good news for Vietnam?

If trade tensions ease through a mutually acceptable U.S.–China agreement, Vietnam could stand to benefit.

• A stabilized global supply chain would allow Vietnamese manufacturers to plan production and exports with greater certainty.

• More importantly, as multinational corporations reassess geopolitical risks, Vietnam’s appeal as an FDI destination will grow—provided we accelerate reforms in areas such as infrastructure, regulatory frameworks, and skilled workforce development.

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