Donald Trump has started signaling that he's ready to slash tariffs on Chinese imports, but economists have warned that the US softening its stance now likely cedes power to China, which perhaps benefits from dragging out trade talks.

On Tuesday, Trump confirmed that he is willing to reduce 145 percent tariffs on all Chinese imports. A senior White House official told The Wall Street Journal that the tariffs may come "down to between roughly 50 percent and 65 percent." Or perhaps the US may use a tiered approach, charging a 35 percent tax on goods that don't threaten national security, while requiring 100 percent tariffs on imports "deemed as strategic to America’s interest," other insiders told the WSJ.

For now, Trump is being vague, only confirming that tariffs "won't be that high" or "anywhere near" 145 percent. Attempting to maintain a tough veneer, Trump warned that China must act quickly to make a deal to end the trade war or else risk making concessions that China may not consider ideal.

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The semiconductor industry is bracing to potentially lose more than $1 billion once Donald Trump announces chip tariffs.

Two sources familiar with discussions between chipmakers and lawmakers last week told Reuters that Applied Materials, Lam Research, and KLA—three of the largest US chip equipment makers—could each lose about "$350 million over a year related to the tariffs." That adds up to likely more than $1 billion in losses between the three, and smaller firms will likely face similarly spiked costs, estimating losses in the tens of millions.

Some chipmakers are already feeling the pain of Trump's trade war, despite a 90-day pause on reciprocal tariffs and a tenuous exception for semiconductors and other electronics.

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Despite a recent pause on some tariffs, Apple remains in a particularly thorny spot as Donald Trump's trade war spikes costs in the tech company's iPhone manufacturing hub, China.

Analysts predict that Apple has no clear short-term options to shake up its supply chain to avoid tariffs entirely, and even if Trump grants Apple an exemption, iPhone prices may increase not just in the US but globally.

The US Trade Representative, which has previously granted Apple an exemption on a particular product, did not respond to Ars' request to comment on whether any requests for exemptions have been submitted in 2025.

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On Wednesday, Donald Trump, once again, took to Truth Social to abruptly shift US trade policy, announcing a 90-day pause "substantially" lowering reciprocal tariffs against all countries except China to 10 percent.

Because China retaliated—raising tariffs on US imports to 84 percent on Wednesday—Trump increased tariffs on China imports to 125 percent "effective immediately." That likely will not be received well by China, which advised the Trump administration to cancel all China tariffs Wednesday, NPR reported.

"The US's practice of escalating tariffs on China is a mistake on top of a mistake," the Chinese finance ministry said, calling for Trump to "properly resolve differences with China through equal dialogue on the basis of mutual respect."

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