Trump Signals End of Tit-for-Tat Tariffs on China as TikTok Deal Takes Back Seat

American President Donald Trump has signaled an end to tit-for-tat China tariffs that have characterized the trade war between the US and China and shaken financial markets. Trump also indicated that a deal on the fate of TikTok in the US will have to wait, Reuters reported.

Diminishing Tariff Appetite

Speaking to reporters at the White House, Trump said he does not want the Chinese to price TikTok too high to a point where people can’t buy it.

“I don’t want them to go higher because at a certain point you make it where people don’t buy. So, I may not want to go higher or I may not want to even go up to that level. I may want to go to less because you know you want people to buy and, at a certain point, people aren’t gonna buy,” Trump added.

Trump’s statement reflected a reduced appetite for higher tariffs on different countries after financial markets experienced turmoil since the cross-border duties took effect on April 2. The president imposed a 10% import duty on the majority of products entering the US. However, implementation of higher tariffs was delayed pending negotiations.

However, the US went ahead and increased tariffs on Chinese imports after Beijing retaliated. Last week, Beijing made it clear that China will not respond to additional tariffs, an indication that the across-the-border levies will not rise any more.

China Trade Talks

On April 17, President Trump said China had initiated trade talks following US imposed levies. Speaking to reporters, Trump said that US tariffs on China may not increase and could even reduce.

“I have a very good relationship with President Xi Jinping, and I think it’s going to continue. And I would say they have reached out a number of times,” Trump said.

When asked whether China’s President had reached out to him in person or whether a government official had done so, Trump said he sees it the same way.

“Well, the same. I view it very similar. It would be the top levels of China. If you knew him you would know that if they reached out, he knew exactly. He knew everything about it, he runs it very tight, very strong, very smart,” the President said.

Trump did not disclose specifics on US talks with China and whether China’s President Xi Jinping is directly involved.

Demand for Respect

Previously, the Chinese Commerce Minister had asked the US to quit pressuring China and demanded respect in trade talks. A fact sheet published by the White House on April 15 showed that Trump tariffs on China currently stand at 245%.

“If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit. China’s position has been very clear. There is no winner in a tariff war or a trade war. China does not want to fight, but it is not afraid to fight.” China’s Foreign Ministry spokesperson Lin Jian said.

Although the two sides are in communication, sources close to the discussions say that high-level, free-flowing exchanges that could result in the deal are largely absent.

Trump has extended TikTok’s ban in the US multiple times. Such a ban would force a sale of TikTok’s US assets. The short video app has a user base of more than 170 Americans. On April 17, President Trump said TikTok’s spin-off deal would have to wait until the tariff issue is 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 said.