Trump backing down on China tariff? US president says, ‘people may stop buying’ | Key things to know

President Donald Trump on Thursday suggested a possible halt to the ‘tit-for-tat’ tariff exchanges between the United States and China that had shocked markets. He also indicating that a decision on the future of social media platform TikTok might be delayed.

What Trump said on tariff deal?

"I don't want them to go higher because at a certain point you make it where people don't buy," Trump told reporters about tariffs at the White House.

"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 said China had been in touch since the imposition of tariffs and expressed optimism that they could reach a deal.

What Trump said on Tiktok deal?

Trump has repeatedly pushed back the deadline for China-based ByteDance to sell its US operations of the short video app, which is used by 170 million Americans. On Thursday, he said the deal would probably be delayed until the trade dispute 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.

Did Trump speak to Xi?

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

Trump, however, declined to specify the nature of talks between the countries or whether they directly included Chinese President Xi Jinping.

Although the two sides are still in touch, sources told Reuters free-flowing, high-level exchanges of the sorts that would lead to a deal.

All about tit-for-tat tariff deall between US and China

Trump's comments further pointed less interest in imposing steep, widespread tariffs on dozens of countries after markets reacted sharply they were rollout on April 2. The Republican president slapped 10% tariffs on most goods entering the country but postponed implementation of higher levies while talks continued.

Still, China's retaliatory actions have resulted in up to a 245 per cent tariff on imports to the United States. Prior to the latest revision, a 145 per cent tariff was being levied on Chinese exports to the United States.

How China reacted to 245% tariff hike?

Reacting to the White House's statement claiming China now faces up to 245% tariffs on imports to the US, Chinese Foreign Ministry spokesperson Lin Jian said they should ask the US side for the "specific tax rate figures."

Lin said that China has repeatedly stated its solemn position on the tariff issue. He said that the tariff war was initiated by the US, and that Beijing has taken countermeasures to protect its legitimate rights and interests and international fairness and justice, terming it completely "reasonable and legal."

(With inputs from agencies)