In a stunning political about-face, Donald Trump has announced a major reversal on his hardline China tariffs, pulling back from the widely criticized 145% rate he championed just months ago. The former president, who has built much of his economic platform on a fierce “America First” trade stance, shocked both allies and critics by floating a new proposal focused on targeted incentives rather than blanket penalties.
“The American worker comes first, but we’re smart about it,” Trump said during a fiery rally in Michigan. “Instead of hitting everyone with 145% tariffs, we’re going to incentivize American manufacturing and punish only the cheaters.”
BREAKING: Trump backs off 145% China tariffs, proposes selective measures to “reward American factories and punish cheaters.” Stunning shift in trade policy. https://t.co/7gRHYBQaLC #Trump pic.twitter.com/93tO9lU3yO— CNN (@CNN) May 26, 2025
The reversal comes amid mounting pressure from business leaders, farmers, and even Republican lawmakers, who warned the aggressive tariffs were hurting American consumers and exporters. “We made our point with China,” Trump added, “but now we play to win without breaking our own backs.”
Fox News host Laura Ingraham hailed the pivot as “a masterstroke of strategy,” while CNN analyst Van Jones called it “a rare moment of pragmatism from the former president.”
Laura Ingraham: “Trump’s shift on China tariffs is a masterstroke. He’s listening to the base and the businesses. Smart move.” https://t.co/UJ8w2z9yOe #FoxNews pic.twitter.com/0HQVbrltuG— Fox News (@FoxNews) May 26, 2025
Markets responded swiftly, with the Dow jumping 300 points after the announcement. Investors cheered the possibility of eased trade tensions between the U.S. and China, while global leaders cautiously welcomed the new direction.
“It’s a positive sign,” said Chinese Vice Premier Liu He in a statement, “but we will wait to see the details before responding.”
Van Jones: “This is a rare moment of pragmatism from Trump. A course correction that even some Democrats can support.” https://t.co/rx2VKUJCVB #CNN pic.twitter.com/ybkLULDePz— CNN (@CNN) May 26, 2025
Social media lit up with reactions. A viral post from @PopCrave read, “Trump ditching his own tariffs? 2025 is already delivering plot twists no one saw coming.”
PopCrave: “Trump walking back 145% tariffs is the biggest political plot twist of 2025 so far. Buckle up.” https://t.co/fXkAYzvTzE #BreakingNews pic.twitter.com/Un3SKMwYef— Pop Crave (@PopCrave) May 26, 2025
Trump’s new plan reportedly includes tax credits for companies that bring manufacturing back to the U.S., penalties for intellectual property theft, and targeted tariffs against industries identified as chronic violators of trade agreements.
With the 2026 election cycle already heating up, analysts say this pivot may reshape Trump’s pitch to both voters and donors, positioning him as a leader willing to recalibrate when needed — or as some critics argue, a politician scrambling to fix self-inflicted wounds.
