U.S. President Donald Trump on Thursday suggested the ongoing tariff standoff with China could ease soon, indicating he may hold back on further increases to avoid damaging consumer demand. "At a certain point, people aren’t gonna buy," Trump said, implying that raising tariffs too high would hurt American shoppers.
His remarks come amid market volatility sparked by his earlier decision to impose 10% tariffs on most imports, with higher rates delayed for now. Trump’s administration recently raised tariffs on Chinese goods to a total of 145% following China’s retaliatory measures. However, both countries appear to be stepping back from further escalations. China recently stated it would not participate in a “numbers game with tariffs,” signaling its own reluctance to raise rates.
Despite rising tensions, Trump confirmed that China has reached out since the latest tariff move, expressing hope for a resolution. However, sources told Reuters that meaningful high-level talks have been limited, reducing chances of an imminent breakthrough.
Trump also addressed the ongoing TikTok dispute. While a divestment deal for the U.S. operations of the Chinese-owned app has reportedly been agreed upon, the president said finalizing it would be delayed until trade negotiations are resolved. "We have a deal for TikTok, but it’ll be subject to China," Trump said, noting the decision hinges on the broader trade outcome.
TikTok, owned by China’s ByteDance, is used by over 170 million Americans. Trump has repeatedly extended deadlines for ByteDance to spin off the app’s U.S. operations, tying its fate to the larger geopolitical battle.
As U.S.-China relations remain tense, both sides appear cautious about further economic escalation, leaving room for potential compromise.