Trade War Fatigue Shows as Trump Backs Away from Aggressive Tariff Escalation
U.S. President Donald Trump signaled a potential cooling of the escalating tariff battle with China, suggesting that his administration may hold back on further hikes amid growing concerns over consumer impact and market volatility. Following the imposition of sweeping 10% tariffs on most imports earlier this month, markets have shown significant distress, prompting Trump to reconsider the scope and trajectory of his tariff strategy.
Speaking at the White House on April 17, Trump said, “I don’t want them to go higher because at a certain point you make it where people don’t buy.” His remarks mark a stark contrast to the aggressive tone adopted earlier this month when the U.S. announced across-the-board import levies. He added, “I may not want to even go up to that level… I may want to go to less.”
These comments are being read as a signal that the administration is not pursuing the maximum 60% proposed tariff ceiling on Chinese goods or a blanket hike on dozens of other countries. The about-face comes after Chinese retaliation and strong disapproval from corporate America, both of which have intensified fears of a prolonged economic standoff.
Highlights
Trump hints at halting or reversing planned tariff hikes amid market turbulence.
10% tariffs implemented on most imports on April 2, but full escalation delayed.
Market volatility and consumer affordability concerns influencing administration stance.
China responded with countermeasures but ruled out further escalation, indicating détente potential.
China Communicates Through Backchannels as Top-Level Talks Remain Elusive
Trump noted that Chinese authorities had made contact since the imposition of U.S. tariffs, though he avoided disclosing specifics, including whether President Xi Jinping had been personally involved. “They’ve been in touch,” Trump said, adding that a resolution was possible, though he acknowledged the lack of any high-level negotiations necessary to finalize an agreement.
Beijing’s message last week that it would not engage in a “numbers game with tariffs” indicated a strategic pullback from retaliation, raising hopes that both sides may be seeking an off-ramp from further economic confrontation. Analysts believe this mutual signaling reflects fatigue with the prolonged trade dispute and a desire to stabilize relations heading into a politically sensitive period in both countries.
Despite this opening, insiders say the absence of detailed, ongoing talks between senior officials suggests a breakthrough remains distant. Trade negotiators from both nations have avoided public appearances, and diplomatic channels remain cautious and fragmented.
Highlights
China has contacted the U.S., but no confirmation of direct Xi-Trump communication.
No evidence of structured, high-level negotiations between Beijing and Washington.
Chinese officials signaling reduced appetite for further tariff escalation.
Markets watching for tangible diplomatic progress ahead of further U.S. decisions.
TikTok Deal on Hold as Trump Ties It to Larger China Trade Settlement
The ongoing uncertainty in U.S.-China trade relations has also delayed a long-awaited deal involving ByteDance’s TikTok, the short video platform with 170 million U.S. users. Although Trump confirmed that a deal exists for TikTok’s U.S. assets to be spun off from its China-based parent, he said the agreement would be postponed until broader trade issues are 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. This marks the latest in a series of extensions Trump has granted to ByteDance under a legal order to divest the platform’s American business interests.
TikTok has remained a flashpoint in U.S.-China tensions since the Trump administration declared the platform a national security risk. Delaying the deal adds a new layer of complexity to the broader trade talks and keeps uncertainty alive for U.S.-based TikTok operations, advertisers, and content creators.
Highlights
Trump confirms existence of a TikTok divestment deal, but places it on hold.
ByteDance’s U.S. operations remain in limbo pending trade resolution.
Legal deadline for ByteDance’s U.S. asset sale extended repeatedly.
TikTok remains a high-profile element of U.S.-China economic confrontation.
Shifting Tone Reflects Strategic Recalibration Amid Election-Year Pressure
Trump’s changing rhetoric on tariffs and his decision to link unrelated economic and political matters like TikTok reflect a tactical recalibration, likely driven by pressure from financial markets and domestic economic advisers. While maintaining his stance on tough trade policy, Trump’s remarks show an increasing awareness of the downside risks tied to widespread tariff use, especially during a delicate economic recovery period.
His comments suggest that while the administration will continue to use trade measures as leverage, there is a greater sensitivity to timing and impact. With global markets watching closely, the White House’s next move could shape the trajectory of international trade and investment for the remainder of the year.
Highlights
Trump balances aggressive rhetoric with market and consumer caution.
Tariffs remain central to strategy, but economic fallout tempers approach.
TikTok, trade, and foreign policy intersect in increasingly complex negotiations.
U.S. election dynamics influencing international economic posture.
