Trump Calms Markets, Hints at Possible End to Trade War with China
Trump noted that China had been in contact since the tariffs were imposed and expressed optimism about a final agreement.
Quick overview
- President Trump has adopted a more moderate and optimistic view on a potential trade agreement with China.
- He acknowledged the negative impact of his trade policies on markets and the American public.
- Trump indicated that the cycle of escalating tariffs may be coming to an end and expressed a desire to avoid further increases.
- China has also shown a willingness to de-escalate the situation, signaling a potential path towards an agreement.
U.S. President Donald Trump has recently taken a more moderate and optimistic stance regarding a potential trade agreement with China.
It appears he may have recognized the impact his trade policies have had on the markets and the American public.
Speaking to reporters at the White House, Trump suggested that the cycle of tit-for-tat tariff hikes with China—which had rattled global markets—could be nearing its end. However, he also hinted that a decision on the future of the social media platform TikTok might have to wait.
“I don’t want tariffs to go any higher because, at a certain point, it stops people from buying,” Trump said, referring to the import duties. “So I might not want to raise them further—or even go that far. I might want to lower them, because you want people to buy things. And at a certain point, they won’t.”
Trump Seeks Descalation
Trump’s comments suggest a waning interest in continuing to escalate broad tariffs against dozens of countries, following sharp market reactions to the measures announced on April 2.
The Republican president had imposed a 10% tariff on most imports into the country but delayed implementing higher rates in hopes of striking a deal.
Still, he raised tariffs on Chinese goods—now totaling 145%—after Beijing responded with its own countermeasures. Last week, China signaled it would not escalate the situation further, stating it would not engage in a “numbers game with tariffs.”
Trump noted that China had been in contact since the tariffs were imposed and expressed optimism about the possibility of reaching an agreement.
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