WASHINGTON (NewsNation) — Global stock markets rose Wednesday after President Donald Trump suggested tariffs on China could drop “substantially” as his administration negotiates trade deals with dozens of countries.
The Dow Jones Industrial Average gained more than 1,000 points, or 2.8%, while the S&P 500 rose 3.2%, and the Nasdaq composite rallied 4%. Europe’s STOXX 600 rose 1.9%, while Japan’s Nikkei rose by nearly 2% and the South Korean Kospi gained 1.6%.
The White House said the administration is working to de-escalate its trade war with China, and Trump expressed optimism that a deal could be made.
“My relationship with President Xi is great. It’s been great for a long time. We have a very good relationship. And I think we’ll make a deal with China,” Trump told reporters Tuesday in the Oval Office. “We’re going to be very nice. They’re going to be very nice. And we’ll see what happens. But ultimately, they have to make a deal because otherwise they’re not going to be able to deal in the United States.”
As it stands, Chinese imports to the U.S. face a steep 145% tariff.
“It won’t be that high, it’s not going to be that high … it won’t be anywhere near that high,” Trump said. “It will come down substantially, but it won’t be zero.”
US talks trade with dozens of countries
During a speech Tuesday, Treasury Secretary Scott Bessent described the trade war as “unsustainable” but said no formal talks have been scheduled.
The Trump administration said the U.S. has received trade proposals from 18 countries and has negotiated with Japan, India, Mexico and South Korea. This week, the administration plans to meet with more than three dozen countries.
Trump has not signaled an intention to pull back the universal 10% tariff.
Earlier this week, China warned countries against reaching trade deals with the U.S. that could potentially negatively impact China.
Trump urges Fed to lower interest rates
Trump has said he wants to see interest rates lowered, putting pressure on the Federal Reserve, though he has walked back his recent calls for Fed Chair Jerome Powell’s ouster.
“I have no intentions of firing him. I’d like to see him be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates. If he doesn’t, is it the end? No, it’s not, but it would be good timing,” Trump said.
Trump had previously called Powell a major loser, accusing him of lowering interest rates last year to try to help former President Joe Biden.
In the past, Powell has said he cannot legally be fired and would refuse to leave until the end of his term next year.