US Looks to Lower Tariffs if China Changes Economic Strategy

A top U.S. government official said there is a chance for a major trade agreement with China that could lower tariffs—extra taxes placed on imported goods. This would happen if China is willing to change the way its economy works.

The U.S. wants to grow its manufacturing sector, which means making more products at home instead of relying on imports. At the same time, China is being encouraged to rely less on selling goods to other countries and to focus more on supporting its own people to buy and use products within the country.

Recent data shows that China’s economy is still focused mostly on manufacturing and exports, instead of consumer spending. U.S. officials believe that this could cause problems for trade relationships around the world if nothing changes. They say China’s current economic plan is not sustainable and could hurt not just China, but the global economy as well.

The U.S. believes that if China shifts its focus toward domestic consumption, it would help balance the global economy. That would mean fewer goods made just for export and more support for Chinese consumers.

The speech was made at a financial conference held during meetings of the International Monetary Fund (IMF) and the World Bank in Washington, D.C. At the event, a U.S. official called on global financial organizations to encourage China to change its policies. He also suggested that the World Bank should stop treating China as a developing country and begin setting deadlines for when strong economies stop receiving certain types of financial support.

Meanwhile, President Trump said that the tariffs placed on Chinese goods, which were raised to 145%, may be lowered soon. The administration is considering reducing them as part of upcoming talks with Chinese leaders to reduce trade tensions. However, the tariffs are not expected to go away completely.

General informational content only. Not tax, legal, or investment advice. Consult a financial professional before making investment decisions. Conduct due diligence. All investments involve risk, including potential loss of principal.