The Trump administration is weighing a significant reduction in tariffs on Chinese imports, with potential cuts of more than 50%, in an effort to ease tensions with Beijing and stabilize global trade, according to sources familiar with the matter, as first reported by The Wall Street Journal.

While no final decision has been made, several options are under consideration. One senior White House official noted that the existing tariffs on Chinese goods may be reduced to between 50% and 65%. Another approach being explored mirrors a tiered system proposed by the House China committee last year: a 35% tariff on goods not deemed a national security risk, and at least 100% on items considered strategically sensitive. The proposal suggested phasing in these rates over five years.

President Trump confirmed the possibility of tariff reductions during remarks on Tuesday, stating, "I'm willing to cut tariffs on Chinese goods... The 145% tariffs will come down. But it won't be zero."

The potential move was met with relief by investors, following weeks of heightened trade rhetoric from the White House.

Tesla CEO Elon Musk also addressed the issue during the company's earnings call, expressing support for lower trade barriers. "I believe lower tariffs are generally a good idea for prosperity, but this decision is fundamentally up to the president of the United States," Musk said.

In response, China signaled on Wednesday that it remains open to resuming trade talks with Washington. However, Chinese officials warned that negotiations would not proceed under continued pressure or threats. In policy circles in Beijing, Trump's latest comments were interpreted as a potential softening of his stance.