WASHINGTON, April 17 (Reuters) - U.S. President Donald Trump indicated on Thursday that the ongoing escalation of tariffs between the United States and China may be reaching a turning point. This development comes as the financial markets reacted sharply to recent tariff increases, and discussions regarding the fate of the popular social media platform TikTok may face delays. "I don't want them to go higher because at a certain point you make it where people don't buy," Trump remarked to reporters at the White House.
Trump's comments highlighted a growing reluctance to impose significantly higher tariffs across the board, particularly after the tumultuous market reaction that followed the introduction of new tariffs on April 2. The Republican president had initially levied a 10% tariff on most imported goods, although he postponed any further increases pending additional negotiations. Notably, tariffs on Chinese imports have increased to a staggering 145% in response to China's retaliatory measures.
In a recent statement, China asserted that it would refrain from escalating the situation further, indicating that it would not engage in a "numbers game" concerning tariffs. This comment mirrors Trump's sentiment that he prefers not to raise tariffs unnecessarily, as excessive rates could deter consumer purchases. Trump noted that China has been in communication since the tariffs were imposed and expressed optimism about potentially reaching an agreement.
Despite these positive remarks, sources informed Reuters that substantial, high-level discussions necessary for a deal have been notably scarce. When pressed for details about the ongoing talks, Trump avoided specifying whether they included direct dialogue with Chinese President Xi Jinping.
Additionally, Trump has consistently extended the legal deadline for ByteDance, the parent company of TikTok, to divest its U.S. operations. On Thursday, he mentioned that any potential spin-off deal would likely be postponed until the trade negotiations with China are resolved. "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 stated, indicating the intertwined nature of trade issues and the future of the social media platform.
In summary, President Trump's recent comments suggest a cautious approach toward further tariff increases and a focus on resolving trade relations with China, while the future of TikTok remains uncertain as negotiations continue. The evolving situation warrants close attention from both investors and consumers alike.
