U.S. President Donald Trump on Thursday suggested that the tariff dispute between the United States and China could soon end. He said that China had reached out since the tariffs began. Markets, which dropped sharply after the first wave of tariffs, showed signs of recovery after his statement.
Trump clarified that he may refrain from raising tariffs again. He added that too high tariffs can mean less demand by consumers. He does not wish to raise prices so high that customers no longer buy anything. That was an indication of a change of strategy from previous warnings of generalized trade restrictions.
In early April, the U.S. placed a 10% tariff on numerous imports. The initial plan called for higher tariffs, but those have been put off. His team wished to negotiate first before implementing tougher action. His words today indicate that he might hold off on that strategy.
This trade dispute has impacted various nations. Investors and businesses reacted with anxiety. The sudden spike in the cost of imports destabilized the market. A bit of stability was brought about by Trump’s recent comments.
Although China and the U.S. have been in touch, officials indicate there have been no serious high-level discussions. Trump did not say if he spoke directly to Chinese President Xi Jinping. He left the contents of the talks ambiguous.
Trump links TikTok to China trade
Meanwhile, talks over TikTok’s future are unresolved. ByteDance, the app’s China-based owner, is under pressure to sell off its U.S. holdings. Trump said on Thursday that he’d announce TikTok later. He believes the trade issue first needs to be resolved.
Trump stated there is a deal for TikTok but it is subject to China’s reaction. Because of this, he is holding off on final action until the broader trade talks are finalized. More than 170 million Americans use the app, whose status is uncertain.
The president’s tone opened the door to the possibility of an early resolution. He seemed less keen to raise the level of tension. That may be the turning point for U.S.-China trade relations. At least for now, global trade partners and markets will be watching. The outcome of the talks has the potential to forecast the economic future.
