In a notable shift, U.S. President Donald Trump has signaled that the intense tariff war between the United States and China might finally be cooling down. Speaking from the White House on Thursday, Trump hinted at dialing back the tit-for-tat tariff increases that have unsettled global markets and disrupted trade.
“I don’t want them to go higher because at a certain point you make it where people don’t buy,” Trump said when asked about future tariffs. “I may want to go to less, because you know, you want people to buy.”
These remarks come just weeks after Trump imposed sweeping 10% tariffs on most goods entering the U.S., sparking a fierce response from China. While those tariffs were initially set to increase even further, Thursday’s comments suggest a softening stance from the President, possibly influenced by volatile market reactions.
China has also hinted at a truce. Last week, Beijing announced it would not engage in a “numbers game with tariffs,” a clear signal that it may not raise rates further despite earlier retaliation. As it stands, Trump has escalated tariffs on Chinese imports to a staggering 145%.
Behind the scenes, diplomatic communications are ongoing, though sources indicate that high-level, formal talks have yet to resume. Trump remained vague on whether any recent discussions included Chinese President Xi Jinping, leaving the exact progress of negotiations unclear.
Adding another layer to the unfolding U.S.-China trade saga is the unresolved issue of TikTok. The President has long demanded that ByteDance, the Chinese parent company of the popular video app, divest its U.S. assets. TikTok, which boasts 170 million American users, has been under scrutiny over data privacy and national security concerns.
Trump revealed that a deal concerning TikTok is already on the table but noted that it will be postponed until the broader trade situation is addressed. “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,” he said.
This double-layered development—lower trade tensions and a delayed TikTok decision—could have major implications for markets, investors, and tech companies. Trump’s pivot reflects a more strategic approach, aiming to balance tough policies with the practical realities of consumer spending and diplomatic negotiation.
As the world watches these developments unfold, the potential for de-escalation could ease investor fears, especially in sectors like tech and manufacturing that have been hit hardest. Whether this signals a long-term thaw in U.S.-China relations or just a temporary pause remains to be seen.
