Trade Tensions: US Signals Potential End to Tariff Hikes with China

  • The US president says, “I don’t want them to go higher,” referring to tariffs.
  • Financial markets showed a negative response to the tariff increases on April 2.
  • China conveys optimism regarding a potential agreement.

The United States President indicated on Thursday that the escalating tariff war between the US and China, which had previously unsettled markets, might be coming to an end. Additionally, he suggested that a resolution regarding the future of the social media platform TikTok could be delayed.

“I am not interested in raising them further, because at some stage, it will discourage purchases,” the President informed reporters at the White House, commenting on tariffs.

“Therefore, I might opt against raising them further, or even reaching the proposed level. I might prefer to reduce them because you want to encourage people to buy, and excessive tariffs can deter them.”

These remarks suggested a decreased enthusiasm for significantly increasing tariffs across various countries, particularly after the adverse market reactions that followed their introduction on April 2.

The President had initially imposed 10% tariffs on a large number of imported goods but postponed the implementation of higher rates, pending further negotiations.

However, tariffs on Chinese imports were increased, reaching a total of 145%, after China responded with its own counter-measures. Recently, China stated that it “will not respond” to a “numbers game with tariffs,” indicating that broad tariff rates would not be increased further.

The President noted that China had been in communication since the tariffs were imposed and expressed optimism about the possibility of reaching an agreement.

Although the two countries are in contact, sources indicate that substantial, high-level discussions that could lead to a resolution have been largely absent.

During his interaction with reporters, the President repeatedly declined to provide details about the discussions between the countries or whether they directly involved the President of China.

The President has consistently extended the deadline for ByteDance, a China-based company, to sell off the US assets of the popular short video application, which is used by millions of Americans. On Thursday, he mentioned that a spin-off deal would likely be postponed until the trade issue is resolved.

“We have an agreement for TikTok, but it will depend on China, so we will delay the agreement until this situation is resolved,” the President stated.