Trump Hints at Softening U.S.-China Tariff War, TikTok Deal on Hold
Washington, April 18 (TOI Bureau) — In a surprising yet cautiously optimistic tone, U.S. President Donald Trump signaled on Thursday that the bitter tariff standoff between the United States and China might be drawing to a close. Speaking to reporters at the White House, Trump acknowledged that while tariffs have served their purpose as a negotiating tool, there is now a growing awareness of their broader economic impact — particularly on consumer behavior and global market stability.
Market Jitters Prompt Rethink on Tariffs
Markets have been reacting strongly to the escalating tariff exchange since their introduction on April 2. Trump initially imposed 10% tariffs on a wide range of imported goods, citing unfair trade practices and a long-standing imbalance in U.S.-China trade relations. China responded swiftly with its own counter-measures, prompting a tit-for-tat exchange that has left investors and businesses on edge.
Despite the tough posture taken earlier, Trump appeared to strike a more measured tone during Thursday’s briefing.
“I don’t want them to go higher because at a certain point you make it where people don’t buy,” he explained, signaling that escalating tariffs any further could backfire domestically.
His statement acknowledged the delicate balance between applying pressure on China and ensuring that American consumers and businesses are not priced out of the market due to higher import costs.
“So, I may not want to go higher or I may not want to even go up to that level,” he said. “I may want to go to less because, you know, you want people to buy — and at a certain point, people aren’t gonna buy.”
China Signals Restraint
On the other side of the Pacific, China too has shown signs of restraint. Although it initially retaliated with tariffs of its own, it later announced that it would not participate in a “numbers game” regarding tit-for-tat tariffs. This statement was interpreted globally as a sign that China may also be seeking to stabilize trade tensions rather than escalate them further.
The reciprocal tariff increases had seen Chinese imports face a total levy of up to 145% following recent U.S. hikes. However, Beijing’s recent comments reflect a possible cooling off in their approach.
“Will not respond to a numbers game with tariffs,” China’s statement read last week — a departure from earlier hardline responses.
These mutual signals of de-escalation mark a significant shift from the adversarial stance both countries have adopted over the past months.
Trump Confirms Talks Are Ongoing
President Trump confirmed that communication channels remain open with China following the tariff implementation. While he did not elaborate on the specifics of the dialogue, his tone suggested that both sides were exploring a path forward.
“China had been in touch since the imposition of tariffs,” Trump said, without detailing the nature or scope of the discussions.
Asked whether President Xi Jinping was directly involved in these talks, Trump declined to comment. Sources close to the matter, however, have indicated that while dialogue continues, there have been few high-level exchanges so far — the kind usually necessary to finalize a comprehensive agreement.
Still, Trump’s statement that both countries are “in touch” offers hope that the bruising economic battle might soon give way to diplomatic negotiation.
TikTok Deal Tied to Tariff Outcome
The status of popular short video platform TikTok also surfaced during the briefing. Owned by China-based ByteDance, TikTok has long been at the center of national security debates in the U.S., with Trump demanding that its U.S. operations be divested.
Although a potential deal has been in the works, Trump suggested that the final decision would be tied to the broader U.S.-China trade negotiation.
“We have a deal for TikTok, but it’ll be subject to China, so we’ll just delay the deal ‘til this thing works out one way or the other,” Trump said.
This remark indicates that while a tentative arrangement regarding TikTok may exist, its execution will likely be deferred until a broader agreement with China is reached.
Trump had previously extended ByteDance’s deadline to divest its U.S. holdings of TikTok, reflecting a more strategic use of the deal as a potential bargaining chip in the larger trade conflict.
Political Calculations and Global Repercussions
Trump’s shift in tone may reflect a broader political calculus ahead of upcoming elections. With inflation and consumer spending under scrutiny, continuing to push high tariffs could risk domestic economic fallout.
At the same time, softening tariffs and signaling potential cooperation could help stabilize international markets — many of which have seen significant turbulence since the trade war escalated.
Still, observers remain cautious. While the rhetoric from both Washington and Beijing appears to be cooling, neither side has committed publicly to a formal reduction or removal of tariffs. The risk of sudden reversals or renewed tensions remains.
Conclusion: Is the End in Sight?
President Trump’s comments mark a pivotal moment in the ongoing trade saga between the U.S. and China. By hinting at a potential ceiling for tariffs and acknowledging their impact on consumer behavior, Trump may be preparing the ground for a negotiated resolution.
China’s recent statements and willingness to avoid escalating the numbers game add further weight to the possibility of a truce.
The fate of TikTok, while secondary to the larger trade issue, remains an important symbolic element. Its resolution may ultimately hinge on how these broader negotiations unfold.
For now, markets, businesses, and consumers alike will be watching closely — waiting for signs that the tariff war, which once seemed destined to spiral out of control, may finally be approaching its end.
