NextFin news, On Thursday, October 2, 2025, it was reported that US President Donald Trump’s tariffs on Chinese goods are likely to remain at current levels, despite ongoing talks aimed at reaching a broader trade agreement by November. This development comes ahead of the Asia-Pacific Economic Cooperation (APEC) summit scheduled later this month in South Korea.
According to two sources familiar with the matter, the Trump administration is comfortable maintaining the average tariff rate of around 55 percent on Chinese imports. These tariffs, initially imposed during Trump’s previous term, include a 20 percent levy related to fentanyl imports and an additional 34 percent reciprocal tariff on various Chinese goods. The tariffs have been a significant source of revenue for the US government, which is focused on addressing the fiscal deficit.
Negotiations between the US and China have recently centered on broader issues such as the future of the Chinese social media app TikTok, subsidies, and export controls rather than tariff reductions. TikTok, which was banned under the Biden administration but supported by Trump, is currently the subject of a proposed $14 billion deal involving a US-based consortium including Oracle. However, Beijing has yet to approve the sale of TikTok’s algorithm license to the consortium.
US Trade Representative Jamieson Greer, involved in the trade discussions, described the current tariff level as a “good status quo” during remarks in New York. He noted that President Trump views the existing tariffs as the effective trade deal with China, though he expressed a desire for freer and more transparent trade in the future.
The US has resisted Chinese demands to remove the 20 percent fentanyl-related tariffs, while China has reduced its purchases of American agricultural products, including no soybean imports since April 2025. Despite these tensions, some concessions have been made, such as China approving exports of rare earth materials to US companies and the US allowing sales of certain low-end semiconductors to Chinese firms.
The trade truce, initially agreed upon after multiple negotiation rounds in Geneva, London, Stockholm, and Madrid, was extended by Trump until November 10, 2025. However, a comprehensive deal is not expected before the upcoming APEC meeting, where Presidents Trump and Xi Jinping are scheduled to meet. Sources suggest that this meeting could help prioritize unresolved issues and potentially lead to another extension of the tariff truce if no agreement is reached.
Last month, Treasury Secretary Scott Bessent revealed that China had sought tariff reductions in exchange for ceding control of TikTok to the US consortium, but this proposal was rejected by the Trump trade team. The nearly two-hour phone call between Presidents Trump and Xi in September was described as “productive” and “constructive” by both sides, indicating ongoing diplomatic engagement despite the stalemate on tariffs.
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