Trump Prefers to Avoid Tariffs on China, Signals Softer Approach
Washington D.C. - President Donald Trump has expressed a preference for not imposing tariffs on China, continuing a reconciliatory tone towards the world's second-largest economy. Despite previous threats of sweeping action, the latest remarks suggest a softening in the administration's stance.
"We have a significant tool [in tariffs] with China, and they don't want them," Trump said in an interview with Fox News host Sean Hannity. "I'd rather not use it, but it's a tremendous power."
Trump has frequently threatened tariffs against both allies and adversaries, hoping to generate additional revenue to support domestic priorities. However, in his first days in office, he has refrained from imposing tariffs on China and has moderated his rhetoric.
Analysts believe China's reliance on exports makes it particularly vulnerable to tariffs. The yuan and Chinese stocks gained after Trump's latest comments.
"Markets will likely reduce their expectations for tariffs," said Fiona Lim of Malayan Banking Bhd. "Trump is maintaining a more conciliatory approach towards China."
Since taking office, Trump has granted TikTok an extension to comply with imminent U.S. bans and downplayed concerns over the app's security risks. He has also threatened lower tariffs on China compared to Canada and Mexico, and hosted Vice President Han Zheng at his inauguration.
Trump's actions may be motivated by his desire to gain cooperation from China in addressing the ongoing war in Ukraine, in which Russia plays a key role.
"They have a lot of power over that situation," Trump said of China.
While Trump praised North Korean leader Kim Jong Un as "a smart guy," he took a more critical tone towards Russian President Vladimir Putin, threatening harsh penalties if Russia does not end the war in Ukraine.
"I don't want to do that, but we've got to get this war ended," he said.
Despite his criticism of China's green energy exports, Trump expressed admiration for President Xi Jinping, stating that he had "a great relationship with him prior to COVID-19."