On April 22, U.S. President Donald Trump announced a major shift in tariff policy, signaling that the current high tariffs on Chinese goods—up to 145%—will be “substantially reduced.”
“145% is very high. It won’t be that high… it will go down significantly, but it won’t be zero,” Trump said in the Oval Office.
He added: “We will act in a friendly manner. They [China] will act friendly too. Let’s see what happens.”
💬 Officials Signal a Softer Approach Toward China
U.S. Treasury Secretary Besant stated the current tariff levels are unsustainable, hinting at a softening tone in China-U.S. relations.
White House spokesperson Levitt emphasized that “significant progress” is being made toward a potential trade agreement with China.
CNN reported that Trump instructed his team not to reach out first and to wait for China to initiate contact.
A U.S. business leader said:
“This administration clearly overestimated the leverage of tariffs.”
⚡ Tesla & Musk Hit Hard by Tariffs
Tesla CEO Elon Musk urged Trump to lower tariffs, but admitted:
“Ultimately, it’s the President’s decision.”
Tariffs’ impact on Tesla:
Tesla Shanghai delivered 916,000 vehicles in 2024 (≈36.7% of global total).
About 50% of battery supply for U.S. Teslas comes directly or indirectly from China.
Tariff hikes may add $3,000–$5,000 to each vehicle’s production cost.
As a result, Tesla suspended sales of its Model S and Model X in China due to retaliatory tariffs.
🚗 U.S. Auto Industry Pushes Back
Six major U.S. auto trade associations have jointly lobbied the Trump administration to stop new auto parts tariffs.
“Many suppliers are already in distress,” the letter says.
“Further cost increases may severely disrupt the entire automotive supply chain.”
🛠️ Trump Administration Plans Emergency Task Force
According to CBS News, the White House is considering an internal task force to address supply chain disruptions if negotiations with China fail.
Potential members include:
Vice President Vance
Treasury Secretary Besant
Commerce Secretary Lutnik
NEC Director Kevin Hassett
CEA Chair Stephen Millan
U.S. Trade Rep Jamison Greer
Industries under threat:
Pharmaceuticals
Semiconductors
Electronics
Critical minerals
📉 Economic Warnings from U.S. Businesses
63% of companies warn:
Current tariff policy may cause a recession in 2025.
51% expect consumer spending to decline by Q2 of this year.
🧠 Summary Takeaway:
The Trump administration is signaling a strategic shift on tariffs amid increasing pressure from business leaders, automakers, and supply chain threats.
While no timeline is confirmed, the message is clear: a full-scale economic confrontation with China may be giving way to negotiation and recalibration.
