The long-running trade fight between the United States and China might finally be easing up. On Thursday, President Donald Trump said that he is now unsure about raising tariffs even higher. Tariffs are extra taxes put on goods that come into a country. The idea behind them is to make foreign items more expensive so people buy more local products instead. But if they go too high, everything costs more — and people stop buying as much.
Speaking to reporters at the White House, Trump explained his thoughts simply. “At a certain point, people aren’t gonna buy,” he said. That’s why he’s now thinking twice about increasing the tariff rates any further.
The president had earlier raised tariffs by 10% on many items coming into the U.S. These extra charges hit products from several countries, not just China. But the biggest hikes were saved for China. The total tariff level on Chinese goods has now reached up to 245%, after China answered back with tariffs of its own. That back-and-forth hit stock markets hard. Businesses worried about the cost of doing trade, and investors feared an all-out economic conflict between the two powerful nations.
Real Chance for Tariffs to Replace Income Tax, Trump Claims
But recently, Trump said he believes the situation may be calming down. He mentioned that China has been in contact since the U.S. introduced these new tariffs. That could be a sign that both countries are trying to fix things.
No Signs of a Big Deal — Yet
Although Trump said talks with China are happening, there are no signs that a major deal is close. Sources familiar with the discussions said that high-level talks — the kind that usually lead to breakthroughs — have not been taking place.
The president chose not to give details about the talks. When asked if he had spoken directly with China’s top leader, he didn’t answer clearly. Instead, he kept his focus on the overall trade situation and the need for tariffs to stay at a level that doesn’t hurt everyday buyers.
Earlier, the U.S. had delayed raising some of the tariffs, hoping that would give both sides time to reach a better agreement. China also seemed to take a softer tone recently. Officials there said they would not get into a “numbers game with tariffs,” suggesting they also don’t want to keep raising the stakes.
This could mean that both countries are looking for a way to stop the fight without making it worse. But until there’s a signed agreement, nothing is certain. For now, the back-and-forth appears to be slowing — but not officially over.
TikTok Deal Stuck in Limbo
The trade tension between the U.S. and China is also affecting other matters — like the future of TikTok in America. TikTok is a popular video-sharing app used by millions of people, especially kids and teens. The app is owned by a company based in China, and U.S. leaders have been worried that user data might be accessed by the Chinese government.
Because of these concerns, the U.S. has demanded that TikTok’s American operations be sold to a U.S.-based company. A deal for that sale was in the works, but Trump now says it will have to wait.
“We have a deal for TikTok,” Trump said on Thursday, “but it’ll be subject to China.” In other words, the U.S. is holding off on finalizing the TikTok deal until the bigger trade situation with China is settled.
Trump had already extended the legal deadline several times for TikTok’s parent company to make changes. But now, it seems the whole thing is on hold. The TikTok issue has become tied closely to the trade dispute — and no major steps will be taken until the larger conflict is sorted out.
For now, while things might be less intense than before, the trade fight still hangs in the air. Tariffs remain in place, talks are quiet, and TikTok’s future in the U.S. is still up in the air.
