The Trump administration is considering cutting the steep 145% tariff on Chinese imports by more than half, possibly as early as next week, as US and Chinese officials gear up for high-level trade talks in Switzerland, The New York Post reported, citing sources close to the negotiations.
US officials are reportedly weighing a reduction of the levy to somewhere between 50% and 54%, a move aimed at easing tensions as trade negotiations unfold. The proposed cut, according to The Post, would be accompanied by a separate plan to lower tariffs on imports from neighbouring South Asian countries to 25%.
“They are going to be bringing it down to 50% while the negotiations are ongoing,” a source was quoted as saying by The Post.
US President Trump hinted at the potential tariff shift during a meeting with UK officials in the Oval Office, stating, “It’s at 145 so we know it’s coming down,” while expressing optimism over US-China ties. “I think we’re going to have a very good relationship,” he added.
Retail industry leaders , including Walmart’s Doug McMillon, Target’s Brian Cornell, and Home Depot’s Ted Decker, reportedly urged Trump to consider easing the tariff burden during an April 21 meeting at the White House. Though the executives described the session as “productive” and “constructive,” no specific outcomes were disclosed.
Retailers have since started preparing for a range of tariff outcomes. Jay Foreman, CEO of toy company Basic Fun, was quoted by The Post that many are now asking vendors to quote prices based on tariffs between 10% and 54% to ensure flexibility.
He added that a 54% levy would still push prices up significantly, such as a Tonka truck jumping from $29.99 to $49.99 but that’s “workable.” A 145% tariff, however, would push the price to nearly $80, which he warned would “bring sales to a virtual standstill.”
Nick Mowbray, CEO of toy brand Zuru, said “the speculation is 54%,” but noted that it has “definitely not been told explicitly to retail yet.”
Meanwhile, White House dismissed the tariff rollback talk as speculation, reported the news agency Reuters. “When decisions on tariffs are made, they will come directly from the President. Anything else is just pure speculation,” said a White House spokesperson.
Still, retail executives say treasury secretary Scott Bessent’s recent remarks at the Milken Institute Global Conference, that the current rate “isn’t sustainable”, gave them confidence that a shift is imminent.
Lawrence Rosen, chairman of Cra-Z-Art, confirmed to The Post that retailers are hearing similar figures, “We are hearing China at 50% to 54% and other Asian countries at 25%.”
Foreman revealed that Basic Fun has seven containers en route to the US under the 145% rate and plans to store them to avoid the costly levy. The rest remain in warehouses, awaiting green light.
Noel Hacegaba, COO at the Port of Long Beach, said hopes are high the Switzerland talks will help “de-escalate growing trade tensions,” but stressed that shippers need “a strong signal” before adjusting supply routes.
Retail expert Gerald Storch, former CEO of Toys R Us, told The Post that since the White House meeting, retailers seem “less panicked” and have slightly “relaxed” their urgency for domestic sourcing.
While the situation remains fluid, the toy industry, with 80% of US toy sales coming from China and broader retail sector are closely watching for any official word from Trump in the coming days.
US officials are reportedly weighing a reduction of the levy to somewhere between 50% and 54%, a move aimed at easing tensions as trade negotiations unfold. The proposed cut, according to The Post, would be accompanied by a separate plan to lower tariffs on imports from neighbouring South Asian countries to 25%.
“They are going to be bringing it down to 50% while the negotiations are ongoing,” a source was quoted as saying by The Post.
US President Trump hinted at the potential tariff shift during a meeting with UK officials in the Oval Office, stating, “It’s at 145 so we know it’s coming down,” while expressing optimism over US-China ties. “I think we’re going to have a very good relationship,” he added.
Retail industry leaders , including Walmart’s Doug McMillon, Target’s Brian Cornell, and Home Depot’s Ted Decker, reportedly urged Trump to consider easing the tariff burden during an April 21 meeting at the White House. Though the executives described the session as “productive” and “constructive,” no specific outcomes were disclosed.
Retailers have since started preparing for a range of tariff outcomes. Jay Foreman, CEO of toy company Basic Fun, was quoted by The Post that many are now asking vendors to quote prices based on tariffs between 10% and 54% to ensure flexibility.
He added that a 54% levy would still push prices up significantly, such as a Tonka truck jumping from $29.99 to $49.99 but that’s “workable.” A 145% tariff, however, would push the price to nearly $80, which he warned would “bring sales to a virtual standstill.”
Nick Mowbray, CEO of toy brand Zuru, said “the speculation is 54%,” but noted that it has “definitely not been told explicitly to retail yet.”
Meanwhile, White House dismissed the tariff rollback talk as speculation, reported the news agency Reuters. “When decisions on tariffs are made, they will come directly from the President. Anything else is just pure speculation,” said a White House spokesperson.
Still, retail executives say treasury secretary Scott Bessent’s recent remarks at the Milken Institute Global Conference, that the current rate “isn’t sustainable”, gave them confidence that a shift is imminent.
Lawrence Rosen, chairman of Cra-Z-Art, confirmed to The Post that retailers are hearing similar figures, “We are hearing China at 50% to 54% and other Asian countries at 25%.”
Foreman revealed that Basic Fun has seven containers en route to the US under the 145% rate and plans to store them to avoid the costly levy. The rest remain in warehouses, awaiting green light.
Noel Hacegaba, COO at the Port of Long Beach, said hopes are high the Switzerland talks will help “de-escalate growing trade tensions,” but stressed that shippers need “a strong signal” before adjusting supply routes.
Retail expert Gerald Storch, former CEO of Toys R Us, told The Post that since the White House meeting, retailers seem “less panicked” and have slightly “relaxed” their urgency for domestic sourcing.
While the situation remains fluid, the toy industry, with 80% of US toy sales coming from China and broader retail sector are closely watching for any official word from Trump in the coming days.
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