WASHINGTON (CP) – President Donald Trump has begun scaling back tariffs on Chinese imports following urgent warnings from top advisors that the economic penalties were causing significant harm to industries and workers who supported his election, creating a pattern of policy reversals that has generated uncertainty with few clear benefits for American businesses.
President Trump’s administration quietly rolled back several major tariff measures on Chinese goods last month, after weeks of mounting pressure from economic advisors concerned about ripple effects across the U.S. economy. The decision followed internal White House meetings where officials presented data showing supply chain disruptions and price increases were disproportionately affecting manufacturing and transportation sectors in states that strongly backed Trump in the 2024 election.
The abrupt policy shift marks the fourth major tariff adjustment since January, when Trump reinstated and expanded import penalties as one of his first actions upon returning to office. White House Trade Representative Robert Lighthizer defended the reversals as “strategic adjustments” rather than retreats, telling reporters Tuesday that “maintaining flexibility allows us to maximize pressure on China while minimizing harm to American businesses.” Sources familiar with internal discussions revealed that some advisors bluntly warned the president that the tariffs were harming “Trump’s people” – particularly blue-collar workers in logistics, manufacturing, and retail.
Economic data has complicated the administration’s trade strategy, with April figures showing U.S. import costs rising 4.7 percent while Chinese exports to other markets increased. Port activity in Los Angeles and Long Beach reported a 12 percent decline in container traffic from China, while shipping to Mexico and Vietnam surged, suggesting manufacturers are routing products through third countries to avoid U.S. tariffs. Meanwhile, promised manufacturing relocations to the United States have materialized more slowly than anticipated, with major electronics and consumer goods producers citing multi-year timelines for significant supply chain shifts.
Business leaders have expressed frustration with the administration’s approach, describing a whiplash effect that makes planning difficult. “Companies need predictability to make investment decisions,” said Chamber of Commerce President Suzanne Clark at an economic forum Monday. “The current on-again, off-again tariff strategy creates exactly the opposite environment.” The White House maintains that pressure on China remains a cornerstone policy, with Trump telling donors at a recent fundraiser that tariffs represent “the greatest negotiating leverage America has ever had” and promising that short-term adjustments will yield “historic” trade concessions from Beijing before year’s end.