CNN
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President Donald Trump said Wednesday that he could re-impose “reciprocal” tariffs on some countries in as soon as two or three weeks, a potentially significant re-escalation of the global trade war that has already raised fears of a US and global recession.
“In the end, I think what’s going to happen is, we’re going to have a 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,” Trump said in an Oval Office ceremony. “I’d say over the next couple of weeks, wouldn’t you say? I think so. Over the next two, three weeks. We’ll be setting the number.”
Trump on April 9 paused his massive so-called reciprocal tariffs, which aren’t technically reciprocal. The reprieve was supposed to be for 90 days to allow countries to negotiate with the administration. Trump officials have said around 90 to 100 countries have offered to negotiate deals, setting a tremendously difficult task before trade negotiators to race against the clock to make new commitments.
Without those negotiated deals, Trump could impose his tariffs on countries that rise as high as 50% – except for China, which the Trump administration set at an astronomical 145%.
It’s not clear what new tariffs Trump will set on countries that are unable to strike a deal with the United States in the coming weeks – and whether those new tariffs will permanently supersede the paused reciprocal tariffs or merely serve as an interim tariff as negotiations continue. In the meantime, the United States maintains a 10% universal tariff on virtually every good imported to America, plus higher rates for certain goods.
Trump’s back-and-forth stance on tariffs has caused incredible uncertainty for businesses and consumers. It has also shaken markets, sending stocks and US assets tumbling. Despite a two-day market rebound, the S&P 500 has still shed $7 trillion in value since hitting a record high in mid-February.
Major organizations have warned about a global economic slowdown as Trump’s import levies threaten to reshape global trade and redirect flows of money around the world.
Even as the reciprocal tariffs on dozens of countries were paused, the tit-for-tat trade war escalated dramatically with China over the past couple months, alarming Wall Street and economists alike. Many major banks predicted the massive tariffs — as well as China’s major retaliatory tariffs on US goods — would plunge the US and global economies into a recession.
US Treasury Secretary Scott Bessent on Tuesday at a private investment conference hosted by JP Morgan Chase acknowledged that the trade war with China is unsustainable and said that he expects the battle to de-escalate in the very near future, a person familiar with the matter confirmed to CNN. He said the tariffs are effectively embargoes on each nation, preventing business from taking place.
Trump echoed that sentiment Wednesday.
“It’s 145%. That’s very high,” Trump said. “But I haven’t brought it down. It basically means China is not doing any business with us, essentially, because it’s a very high number.”
Although he has said the significant tariffs would come down soon, Bessent predicted they wouldn’t be eliminated — a notion Trump also echoed.
Instead of a hard break or complete decoupling between the United States and China, Bessent told the investors Tuesday that the goal is to have a rebalancing of trade, the source told CNN. But in a separate discussion with reporters Wednesday, Bessent noted that it could take between two and three years to restore normal trade with China, a person familiar with the matter told CNN.
Stocks surged on Bessent’s remarks Tuesday and continued to rise Wednesday. US stock futures were largely flat after hours on Wednesday.
China responded to the Trump administration’s newfound openness to a deal with a sharply worded statement, urging America to change its approach to trade.
“Our doors are open, if the US wants to talk. If a negotiated solution is truly what the U.S. wants, it should stop threatening and blackmailing China and seek dialogue based on equality, respect and mutual benefit,” Chinese Foreign Ministry Spokesperson Guo Jiakun told reporters on Wednesday, according to a transcript posted online by the Chinese government.
“To keep asking for a deal while exerting extreme pressure is not the right way to deal with China and simply will not work,” he added.
Although Trump Tuesday said he expected tariffs on China to “come down substantially,” on Wednesday he said he wouldn’t wait around forever for a deal from any country — including China. In a matter of weeks, he said, his administration could impose those tariffs again.
Trump called trade with China “very one-sided” but said “we get along” and dismissed the harsh language from the Chinese government Wednesday.
“I get along very well with President Xi,” Trump said “I have to hope we can make a deal, otherwise we’ll set a price.”
