Trump does not want to raise the recently increased punitive tariffs any further. According to BILD, he wants to “give time” and is signaling a willingness to talk in the conflict with China.

US President Donald Trump has made a surprise announcement that he does not intend to further increase the recently raised import tariffs. “I don’t want tariffs to go any higher,” Trump said at a meeting with Italian Prime Minister Giorgia Meloni at the White House.

The statement was first published by the German newspaper BILD, which quoted the US president as saying:

“We are currently in talks with China. They have contacted us several times.”

Signs of détente – but no agreement yet

Trump’s announcement marks a remarkable change of course in his trade policy, which for years has relied on escalation and punitive tariffs as a means of political pressure. As BILD further reports, Trump was optimistic in his conversation with Meloni that an agreement with China was within reach – but also emphasized:

“We have time.”

In March, Trump imposed new punitive tariffs of up to 125 percent on Chinese products in response to Beijing’s persistent export surpluses. China responded with counter-tariffs, including on aircraft parts, electric motors, and high-tech products. The escalation had recently also affected European markets and global investor confidence.

Economy reacts positively to Trump’s new tone

The prospect of de-escalation was largely welcomed by the business community. According to BILD, analysts on Wall Street and in Europe see this as a possible end to the recent turmoil on the financial markets. The president has thus signaled that he is prepared to refrain from direct confrontation – at least for the time being.

Europe remains vigilant

While Trump is focusing on diplomatic détente, Europe remains cautious. EU Commission President Ursula von der Leyen also recently expressed reservations about the development of transatlantic trade relations. The background to this is the pending US tariffs on European cars and luxury goods, which could also be activated at any time.

Conclusion

It remains to be seen whether Trump’s new restraint marks a lasting turnaround or is merely a tactical maneuver ahead of the US presidential elections. One thing is certain: for the first time in months, the president is sending a signal of détente – and thus providing international relief.

Image:
Gage Skidmore, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons