US said to be considering scaling back tariffs on China, car parts

The Trump administration is reportedly considering scaling back punishing tariffs that have roiled markets for weeks.

The policies being discussed include slashing duties on Chinese goods from 145% to a tiered approach starting at 35%, The Wall Street Journal reported, while the Financial Times said the US would exempt car parts from otherwise onerous tariffs on automakers.

The rowback has been driven by plummeting markets as well as corporate frustration: Tariffs have been cited in more than 90% of first-quarter earnings calls, while “recession” was mentioned in nearly half.

China has taken notice, with one Beijing-based expert noting “a significant discrepancy between [US trade policy’s] actual outcomes and its initial goals.”