In a notable shift, US President Donald Trump has signaled a potential easing of the escalating tariff confrontation with China.
Speaking at the White House, Trump expressed concerns about the impact of high tariffs on consumer demand, stating: “I don’t want them to go higher because at a certain point, you make it where people don’t buy.” He even hinted tariffs could be reduced, noting high costs could eventually stop consumers from buying.
This comes after a series of back-and-forth tariff increases between the US and China. The escalating trade tensions have been a big concern for the financial markets all around the world.
Are Formal US-China Trade Talks Resuming?
Now, despite the lack of formal negotiations, both sides have shown signs of seeking a resolution. China’s Foreign Minister Wang Yi emphasized opposition to “unilateral bullying” and protectionism, calling for mutual respect in trade relations. For his part, Trump sounded optimistic about reaching a trade deal with China, although he offered no specifics or timeline for resuming talks.
Two days ago, Donald Trump also had a talk with the Japanese Economic Revitalization Minister Ryosei Akazawa on the topic of tariffs. That and the potential de-escalation of trade tensions with China have had a positive effect on global markets, especially Asian ones.
For instance, Japan’s Nikkei share average experienced its strongest weekly performance in three months, likely on optimism about potential US trade deals.
What About the TikTok Situation?
During that same White House speech where he discussed tariffs, President Trump avoided specifying what exactly was discussed between the US and China, or if talks directly involved Chinese President Xi Jinping. What he did mention, however, is the TikTok deal.
He stated that the government has a deal regarding the Chinese short-form online video platform and that it’s up to China, but the deal will have to take a backseat for now until they figure out this whole trade escalation first.
In the past, Trump was constantly moving the legal deadline for China-based ByteDance (TikTok’s owner) to divest the US assets of TikTok. The platform is used by 170 million people in the US.
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