Trump Expresses Reluctance To Escalate China Tariffs, Hints At Trade Deal

President Donald Trump expressed his hesitation to escalate tariffs on China, citing potential trade stagnation. He also hinted at China’s attempts to negotiate a deal.

What Happened: Trump voiced his concerns about escalating tariffs on China, suggesting it could hinder trade between the two nations. He also mentioned that Beijing has made several attempts to initiate talks.

Trump avoided direct answers when questioned about his personal contact with Chinese leader Xi Jinping. He emphasized his good relationship with Xi and suggested that any outreach from China would have Xi’s knowledge and approval, reports Bloomberg.

The ongoing economic clash between the US and China has seen both countries imposing hefty import duties on each other. Trump has increased levies to a combined 145% on Chinese goods, with China retaliating with duties of 125% on US goods.

Also Read: As Trump Intensifies Tariff War With China, Global Economy Feels the Tremors: ‘What’s the Endgame Here?’

Despite the high tariff levels, Trump indicated a potential willingness to lower them. He also expressed confidence about a deal that would include trade concessions and a deal for the sale of TikTok’s US assets.

Trump suggested that the discussion of tariffs could be a part of the negotiation if China approves ByteDance Ltd.’s divestment of TikTok’s US operations.

Why It Matters: The trade war between the US and China has been a significant factor in global economic dynamics. The high tariffs imposed by both countries have affected global trade patterns and have the potential to stagnate trade between the two nations.

Trump’s reluctance to further escalate tariffs and his hint at a potential trade deal could signal a shift in US-China trade relations. This development could have significant implications for global trade and economic stability.

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