Washington (TDI): US President Donald Trump said on Tuesday that he had no intention of firing the chair of the United States Federal Reserve and signalled a “substantial” lowering of tariffs on China.
Trump’s recent criticism on Fed chief Jerome Powell had fanned concern that he would remove him, sending jitters through global markets.
The president had criticized Powell for warning that Trump’s massive tariffs policy would likely reignite inflation. “I have no intention of removing him,” Trump said on Tuesday. “I’d like to see him take a more proactive approach to lowering interest rates, this is an ideal time to do so,” Trump said.
Since Trump’s return to the White House in January, Washington has imposed additional tariffs of 145% on many products from China. Beijing has responded with massive counter-tariffs of 125% on US goods.
Read More: US Says China Faces 245% Tariffs
But Trump acknowledged Tuesday that 145% was a “very high” level, and that this will come down considerably. “They will not be anywhere near that number,” but “it won’t be zero,” he said.
His statement came after Treasury Secretary Scott Bessent told a closed-door event on Tuesday that the levies amounted to a reciprocal trade embargo, according to AFP.
Read More: China Hits Back: 125% Tariffs on US Goods
As global finance ministers and central bankers gather in Washington this week, all eyes are on the progress of trade negotiations on the margins of the spring meetings as nations grapple with Trump’s new massive tariffs.
Meanwhile, China’s Foreign Minister Wang Yi urged Tuesday in phone calls with his UK and Austrian counterparts for the Britain and European Union to work with China on safeguarding global trade.
