President Donald Trump on Thursday indicated that the tariff impasse between the United States and China may be on the path to resolution, even as a proposed negotiation involving TikTok hangs in the balance.
The remarks come amid signals that both countries are moving away from further economic escalation.
What Happened: Speaking to reporters at the White House, Trump said he may put a pause on increasing tariffs further, citing concerns about their effect on consumer behavior, Reuters reported.
“I may not want to go higher… because you want people to buy, and at a certain point, people aren’t gonna buy,” he said.
Earlier, the president had imposed a 10% tariff on most imports and raised duties on Chinese goods to 145% after retaliation from Beijing. However, the administration has since postponed additional increases, and Trump admitted that Chinese officials have been in contact.
Why It Matters: The likely pause in tariff escalation demonstrates a shift from the earlier aggressive approach that upset financial markets and damaged U.S.-China trade ties.
While Beijing said it would not match Washington “in a numbers game with tariffs,” Trump’s more restrained tone suggests room for negotiation.
On Thursday, President Trump also shared an update about TikTok. Although a deal exists for ByteDance to spin off TikTok’s U.S. operations, Trump shared that the transaction is on hold. “It’ll be subject to China,” he said, “so we’ll just delay the deal ‘til this thing works out one way or the other.”
With formal negotiations yet to gain momentum, the prospects for both trade relations and the TikTok deal remain unclear. Trump’s comments suggest a preference for de-escalation, but progress may depend on how both countries navigate the next phase of talks.
TikTok recently announced that its U.S. public policy chief, Michael Beckerman, is leaving his Washington-based role to transition to a global advisory position.
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