The New York Post: The United States is considering significantly reducing tariffs on China to 50%, which could take effect as early as next week

According to the New York Post, citing anonymous sources, as senior officials from China and the United States are set to travel to Switzerland for high-level trade negotiations, the Trump administration is considering cutting the 145% tariff on Chinese imports by more than half, potentially taking effect as early as next week. Sources revealed that U.S. officials are discussing a proposal to reduce the punitive tariffs imposed by President Trump on Chinese goods to between 50% and 54%.

The sources commented on the tariff adjustment plan, stating, "They intend to lower the tariffs on China to 50% during the negotiations," while also adding that the U.S. plans to reduce trade tariffs on neighboring South Asian countries to 25%.

In response, the White House dismissed the report as mere speculation. A White House spokesperson stated, "Tariff-related decisions will be made personally by the President; other claims are baseless."

Notably, on the same day, Trump announced a trade agreement with the UK at the White House, stating that tariffs on China "will definitely be reduced." He told reporters, "The current tariff is 145%, so a reduction is imperative. I believe our future relationship will be very good."

Insiders pointed out that lowering tariffs to the 50% - 54% range aligns with the tax rates discussed when Trump met with executives from the three major U.S. retailers last month. U.S. Treasury Secretary Scott Basset stated this week that the current three-digit tariff levels are "unsustainable."

Reportedly, Walmart CEO Doug McMillon, Target CEO Brian Cornell, and Home Depot CEO Ted Decker all indicated that the meeting held on April 21 at the White House was "productive," but did not disclose specific details.

Since 80% of toys in the U.S. market are produced in China, the toy industry will be the first to be affected by the tariff war. Jay Foreman, CEO of Basic Fun, a company primarily engaged in the toy business, revealed that after the meeting, word quickly spread in the market that "the ideal tariff rate to allow Chinese goods to smoothly enter the U.S. market is 54%." The company's retro toys, such as Tonka trucks, Care Bears, and My Little Pony, are all manufactured in China.

Foreman told the New York Post, "The signal we received is that the tariff adjustments could be implemented as early as this week or next week." He also added that many retailers have begun asking suppliers to quote prices based on different tariff rates of 10% - 54%, "so that goods can be quickly priced upon arrival."

Rumors in the retail industry are also spreading rapidly. Retail executives pointed out that although a 50% tariff is a significant reduction from the current rate, it will still pose a huge challenge for retailers preparing for the critical holiday shopping season, potentially leading to significant price increases for goods. For example, a Tonka heavy-duty dump truck toy that sells for $29.99 this week would rise to $49.99 if the tariff is adjusted to 54%.

Foreman believes this price is "acceptable," but if the 145% tariff remains, the truck's price would soar to $79.99, "which is just too expensive," and sales would nearly come to a halt.

White House spokesperson Kush Desai responded in a statement, "Tariff decisions will be made personally by the President; other claims are nonsense." However, sources revealed to the New York Post that "Basset's remarks at the Milken Institute conference reassured corporate executives," and everyone realizes that "a trade agreement is likely to be reached." In addition, sources said that Southeast Asian countries are scrambling to reach agreements with the United States, and the Treasury Department's phone is almost overwhelmed with calls