Washington, April 23, 2025 —
In a major shift on trade and monetary policy, former U.S. President Donald Trump announced that tariffs on Chinese goods would be substantially reduced if a deal is reached. At the same time, he confirmed he has no intention of removing Federal Reserve Chair Jerome Powell.
Speaking to reporters, Trump said, “The tariffs are currently very high — too high — and we’ll bring them down. Not eliminate, but they won’t stay where they are.” The comments come after Treasury Secretary Scott Bessent described the current tariffs as a “reciprocal trade embargo.”
China welcomed the remarks, with its Foreign Ministry spokesperson saying, “The door for talks is wide open.”
On the Fed, Trump acknowledged policy differences with Powell but clarified that he would not fire him. “I wish he would cut interest rates more, but I won’t remove him,” he said, reiterating his respect for the institution’s independence.
Markets responded positively. The S&P 500 jumped 2.6%, the Dow Jones rose 2.2%, and tech-heavy Nasdaq surged 3.6%, led by major gains in AI and tech stocks.