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As U.S. and Chinese officials gear up for negotiations in Switzerland, the Trump administration is reportedly preparing to slash the 145% tariff on Chinese goods to between 50% and 54%. This potential move, according to sources close to the matter, could be announced as early as next week and comes amid mounting pressure from U.S. retailers and global trade partners.
Talks around tariff reduction have intensified since the April 21 meeting at the White House, where President Trump met with top retail CEOs, including Doug McMillon of Walmart, Brian Cornell of Target, and Ted Decker of Home Depot. Although official details from the meeting remain scarce, all three executives described it as "productive" and "constructive." Retailers have since begun recalibrating pricing strategies, anticipating a shift in trade policy.
Basic Fun CEO Jay Foreman revealed that internal discussions have pegged 54% as the critical figure needed to "get the ships flowing out of China." His company currently has 35 containers en route to the U.S., seven of which were shipped shortly after the 145% tariff was imposed in April. "We're holding back inventory in China, waiting for clarity," Foreman said.
Industry insiders say the toy sector is among the hardest hit, with 80% of U.S. toy imports manufactured in China. "At 145%, the math just doesn't work," Foreman explained, citing that a Tonka Mighty Dump Truck priced at \$29.99 would jump to \$79.99 under current tariffs. At 54%, the cost would still rise—but to a more manageable \$49.99.
White House spokesperson Kush Desai dismissed ongoing reports as speculative, emphasizing, "When decisions on tariffs are made, they will come directly from the President." However, comments from Treasury Secretary Scott Bessent at the Milken Institute Global Conference reinforced optimism, admitting that the current rate "isn't sustainable."
This sentiment was echoed by Lawrence Rosen, chairman of Cra-Z-Art, and Zuru CEO Nick Mowbray, both noting speculation of a 54% cap. "Retailers are already requesting vendor quotes based on multiple potential tariff bands," Rosen stated.
At the Port of Long Beach, COO Noel Hacegaba voiced cautious optimism. "A strong signal from the upcoming talks could reset trade flows," he noted. However, he warned that realignment would require more than just promises—it would need POLICY. Former Toys "R" Us CEO Gerald Storch summed up the shift in sentiment: "Retailers seemed to relax after that White House meeting. There's less panic now. They're bracing for a new normal."
