Trump suggests that the conclusion of tariffs imposed by China could be on the horizon
Trump indicates a reciprocal approach China’s tariffs could be approaching a conclusion, while the TikTok agreement remains stalled. On Thursday, U.S. President Donald Trump indicated a possible conclusion to the escalating tariff increases between the United States and China that have unsettled financial markets. Additionally, he suggested that a resolution regarding the future of the social media platform TikTok may be postponed. “I am concerned about the potential for increased tariffs, as they could reach a level that discourages consumer purchases,” Trump stated during a press briefing at the White House. “It appears that there may be a reluctance to pursue higher levels or even reach that particular threshold.” There is a consideration to reduce offerings, as the goal is to encourage consumer purchases. However, there comes a threshold where consumer interest may wane.
Trump’s remarks indicate a reduced willingness to implement significantly higher tariffs on a wide range of countries, following the market’s severe reaction to their initial introduction on April 2. The President has imposed a 10% tariff on the majority of goods entering the country; however, the implementation of increased levies has been postponed as negotiations continue. In response to Beijing’s counter-measures, he has increased tariffs on Chinese imports to a staggering 145%. Last week, China announced that it “will not respond” to what it described as a “numbers game with tariffs,” indicating that there would be no further increases in across-the-board rates.
President Trump indicated that China has made contact following the implementation of tariffs and conveyed a sense of optimism regarding the potential for a deal to be reached. Despite ongoing communication between the two parties, sources indicate that substantial, high-level discussions necessary for reaching an agreement have been notably lacking. In a recent interaction with the press, Trump consistently refrained from detailing the discussions occurring between the nations or confirming if they involved Chinese President Xi Jinping directly.
President Trump has consistently prolonged the legal deadline for ByteDance, the China-based parent company of the popular short video app, to divest its U.S. assets, which are utilized by 170 million Americans. On Thursday, he indicated that a spin-off deal is expected to be postponed until the trade issue is resolved. “We have reached an agreement regarding TikTok; however, it will be contingent upon developments in China. Therefore, we will postpone the deal until the situation is resolved,” Trump stated.
