[WORLD] U.S. President Donald Trump said on Thursday that the tit-for-tat tariff rises between the United States and China that have stunned markets may come to a stop, and that a compromise over the fate of social media app TikTok could have to wait.
"I don't want them to go higher because you get to a point where people don't buy," Trump told reporters on tariffs at the White House.
"So I may not want to move any higher, or even to that level. I may want to go with less because you know you want people to buy and, at some time, they won't." Trump's statements hinted to a lessened willingness for much higher overall tariffs on goods.
Economists have warned that prolonged tariff escalations could weigh heavily on consumer spending and stifle U.S. economic growth heading into a critical election year. Retailers have already reported rising costs on imported goods, particularly in electronics and apparel, sectors where China remains a dominant supplier. The National Retail Federation issued a statement Thursday urging the administration to seek a negotiated resolution that avoids further disruptions to global supply chains.
The Republican president imposed 10% tariffs on most commodities entering the country while delaying the imposition of heavier charges pending negotiations.
Nonetheless, he raised tariffs on Chinese goods, which currently reach 145%, when Beijing responded with its own countermeasures. Last week, China stated that it "will not respond" to a "numbers game with tariffs," indicating that overall rates will not climb any more.
Trump stated that China has contacted him since the tariffs were imposed and expressed optimism that they could strike an agreement.
Behind the scenes, officials on both sides have faced increasing pressure from their domestic industries to de-escalate tensions. Chinese tech manufacturers, still recovering from earlier rounds of sanctions, are reportedly lobbying Beijing to reengage with U.S. negotiators. Similarly, American agricultural exporters, who have seen demand shrink under retaliatory duties, are pushing Washington to restore access to Chinese markets.
While the two sides are in contact, sources told Reuters that free-flowing, high-level discussions that could lead to a settlement have been few. Speaking to reporters, Trump repeatedly declined to clarify the content of the meetings or whether they included Chinese President Xi Jinping.
Analysts suggest that the uncertainty surrounding the TikTok negotiations has become emblematic of the broader U.S.-China struggle for technological dominance. ByteDance's failure to divest its U.S. operations by the legal deadline has fueled concerns over data privacy and national security, with U.S. lawmakers increasingly divided over how to handle the matter. Some have called for an outright ban on the app, while others support a sale to a U.S.-based entity under strict oversight.
Trump has repeatedly delayed the legal deadline for China-based ByteDance to transfer its U.S. assets from the short video app, which is used by 170 million Americans. On Thursday, he stated that a spin-off agreement would most likely wait until the trade dispute was 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," Mr. Trump stated.
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