U.S. President Donald Trump has hinted at a potential de-escalation in the trade war with China, suggesting that additional tariffs may be reduced or withdrawn as the economic impact becomes more apparent.
Speaking at the White House, Trump acknowledged that the current high tariffs—reaching 145% on certain Chinese imports—could dampen consumer spending, and noted that further tariff increases might not be necessary.
Markets reacted strongly to the initial wave of tariffs on April 2, prompting both Washington and Beijing to adopt a more measured tone. While the U.S. maintains high tariffs, China has signaled a willingness to return to negotiations rather than escalate the conflict.
Trump also revealed that China had re-engaged in dialogue following its own retaliatory tariff announcement, although he declined to confirm whether Chinese President Xi Jinping was directly involved.
On another front, the TikTok divestiture deal remains stalled. Although ByteDance had agreed in principle to spin off its U.S. operations, Trump stated that a final decision will be delayed until broader trade talks with China progress further.
This shift indicates that both tariff disputes and high-profile tech decisions are entering a strategic pause, as diplomatic efforts seek space for compromise in an increasingly complex bilateral relationship.