Trump Retreats On His Trade War's Chinese Front, Claims Big Victory

But the remaining 30% import tax on Chinese goods will still cost Americans many billions of dollars per year in higher prices.

WASHINGTON — President Donald Trump on Monday retreated on the Chinese tariffs portion of his trade war against the world, calling it a great success that would “be fantastic for us.”

“They’ve agreed to open China, fully open China,” he told reporters just prior to setting off to the Middle East for his first extended foreign trip since returning to the White House in January.

The new 30% rate on most Chinese goods is a small fraction of the 145% rate he had set last month, but is still three times the 10% rate he has said will be a baseline for all foreign imports, with higher 25% rates for steel, aluminum and automobiles.

The lower rate will last 90 days with the expectation of a broader agreement with China, but Trump said that even if the rate goes higher, it will likely not go back up to 145%.

“You know, at 145, you’re really decoupling because nobody’s going to buy,” he said. “But they’d go substantially higher.”