Markets Tread Water Amid Conflicting Signals on US-China Tariff Talks

Highlights:

• At the time of writing, US futures and Asian stocks traded in tight ranges amid uncertainty over potential tariff cuts on Chinese imports.
• Reports from Reuters and The Wall Street Journal suggested the US may reduce tariffs to 50–65%, but this was later denied by officials.
• Treasury Secretary Scott Bessent stated there was no "unilateral" offer on the table, tempering investor hopes for swift trade relief.

Investors weigh reports of possible tariff cuts and official denial

Global markets moved cautiously on Thursday, with US futures and major Asian stock indices trading within tight ranges at the time of writing, as investors digested conflicting updates surrounding potential US tariff reductions on Chinese imports.

Speculation grows over tariff rollback

Rumours emerged on Wall Street that the United States could be considering a reduction in tariffs on Chinese goods ahead of renewed trade negotiations with Beijing. According to sources cited by Reuters and The Wall Street Journal, officials were reportedly evaluating a proposal to scale back existing levies, potentially lowering them to between 50% and 65% of their current levels.

The speculation provided a brief lift to market sentiment, with some investors hopeful the move could signal easing tensions between the world’s two largest economies.

Officials dampen market optimism

However, optimism was tempered after US Treasury Secretary Scott Bessent clarified that no “unilateral” tariff reduction offer had been made by the Biden administration. His comments poured cold water on hopes of a breakthrough, underscoring the fragile state of US-China trade relations.

Bessent’s statement suggests that while dialogue with Beijing remains open, any meaningful tariff relief would likely require mutual concessions—potentially slowing progress toward a deal.

Markets in wait-and-see mode

Equity markets in Asia remained mostly flat, while US futures hinted at a subdued open, as traders awaited more definitive policy direction. The uncertainty underscores how sensitive global markets remain to geopolitical headlines, particularly involving US-China economic policy.

Investors are expected to stay cautious until there’s more clarity on whether Washington will act on tariff changes or if current measures remain firmly in place.

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