- “I don’t want them to increase,” says the U.S. President regarding tariffs.
- Markets reacted sharply to the implementation of higher tariffs on April 2.
- Trump states that China is hopeful about negotiating a deal.
On Thursday, President Donald Trump of the United States hinted at a possible end to the escalating tariff disputes between the U.S. and China, which have caused significant market turmoil. He indicated that any agreements concerning the social media platform TikTok might need to be postponed.
“I don’t want them to go any higher because ultimately you reach a point where consumers pull back,” Trump expressed to reporters during a session at the White House.
“So, I might choose not to escalate further or even maintain the current levels. It’s important to encourage purchasing, and if tariffs go too high, people won’t buy,” he added.
These remarks suggest a waning interest in enforcing broad increases in tariffs across multiple countries, particularly following the market backlash after the tariffs were introduced on April 2.
The Republican leader imposed a 10% tariff on most imported goods but has postponed further increases while negotiations are underway.
Nonetheless, he has raised tariffs on imports from China to an overall rate of 145%, a response to Beijing’s counteractions. China recently announced that it “will not engage in a numbers game with tariffs,” signaling that it does not plan to implement further tariff increases.
Trump stated that China has been in communication since the tariffs were applied and expressed hope for an eventual agreement.
Although both sides are in contact, sources informed Reuters that high-level discussions necessary for a resolution have mostly been absent.
When asked by reporters, Trump refrained from disclosing the specifics of discussions between the nations or if they directly involved Chinese President Xi Jinping.
Trump has continually extended a deadline for China-based ByteDance to divest its American TikTok assets, stating that a resolution regarding the app would likely be postponed until the trade matters are resolved.
“We have a plan for TikTok, but it’s contingent on China, so we’ll delay the agreement until this situation is settled one way or the other,” Trump remarked.
