Trump Links Lower Tariffs to China’s Actions as U.S. States File Lawsuits Over Trade War

U.S. President Donald Trump has reaffirmed his readiness to ease the steep tariffs imposed on Chinese goods but emphasized that any such decision would depend on China’s actions. Addressing reporters at the White House on Wednesday, Trump said he may announce changes to tariff rates on key trading partners, including China, in the coming weeks, contingent on ongoing trade negotiations.

“That depends on them,” Trump stated, referencing China. “We have a very, very great place—it’s called the United States of America—and it’s been ripped off for years.” When asked how soon he might reduce the current 145 percent tariff on most Chinese imports, Trump indicated the timeline hinges on the progress of talks with foreign governments.

Trump voiced optimism about reaching trade deals, asserting that, “In the end, what I think is going to happen is we’re going to have great deals. And by the way, if we don’t have a deal with a company or a country, we’re going to set the tariff.”

He also spoke positively about his relationship with Chinese President Xi Jinping, expressing hope that both sides could eventually come to an agreement. “Otherwise, we will set a price,” Trump said. When asked whether his administration was actively engaged in talks with China, he replied, “Actively. Everything is active. Everybody wants to be a part of what we’re doing.”

Trump’s remarks came as Wall Street posted its second consecutive day of gains, buoyed by growing optimism that the U.S. and China may de-escalate their trade dispute. The S&P 500 closed 1.67 percent higher on Wednesday, while the Nasdaq Composite rose by 2.50 percent, building on earlier gains influenced by U.S. Treasury advisor Scott Bessent’s remarks that the current trade dynamic with China was “unsustainable.”

Meanwhile, The Wall Street Journal reported that Trump’s administration is considering cutting tariffs on Chinese goods by 50 to 60 percent in an effort to ease tensions. Sources familiar with the matter said Trump is reviewing multiple options but would expect China to reduce its own 125 tariffs on U.S. goods in return.

On Tuesday, Trump admitted the 145 percent tariff on Chinese goods was “very high” and suggested it would be significantly reduced at some point.

China, for its part, has consistently opposed protectionist tariffs but has stated its readiness to retaliate if necessary. Chinese Foreign Ministry spokesperson Guo Jiakun said during a media briefing that while China does not seek conflict, it will defend its interests. “We have made it very clear that China does not look for a war, but neither are we afraid of it. We will fight, if fight we must,” he said. Guo urged the U.S. to engage in respectful dialogue rather than threats and coercion.

Adding to the domestic pressure on Trump, a coalition of 12 U.S. states—including Arizona, Colorado, Connecticut, Illinois, and New York—filed a lawsuit on Wednesday against the administration’s tariff policy. Filed in the U.S. Court of International Trade in New York, the suit challenges Trump’s authority to impose tariffs without congressional approval.

Arizona Attorney General Kris Mayes criticized the tariffs as “economically reckless” and legally unfounded. “President Trump’s insane tariff scheme is not only economically reckless—it is illegal,” Mayes said. “Arizona cannot afford President Trump’s massive tax increase. No matter what the White House claims, tariffs are a tax that will be passed on to Arizona consumers.”