Trump Says Tariffs on China Are a Last Resort Amid Global Policy Challenges

President Donald Trump has expressed his preference for diplomacy over imposing tariffs on China, despite continuing to use them as a bargaining tool. In an interview with Fox News host Sean Hannity on Thursday, Trump said, “We have one very big power over China, and that’s tariffs, and they don’t want them. And I’d rather not have to use it. But it’s a tremendous power over China.”

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Since taking office, Trump has repeatedly threatened tariffs to pressure both allies and adversaries, suggesting they could provide additional revenue to support domestic priorities. Notably, he warned on his second day in office that he might impose a 10% tariff on China by February 1 if the country failed to stop fentanyl exports to the U.S.

Markets responded positively to Trump’s tempered tone. The offshore yuan gained 0.3% against the dollar, while the onshore yuan increased by 0.2%. Chinese stocks also surged, with the CSI 300 Index rising 1% and a Hong Kong stock gauge jumping more than 2%.

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While Trump has stopped short of implementing tariffs immediately, his earlier campaign rhetoric hinted at levies as high as 60%, which economists argue could severely disrupt U.S.-China trade. Trump described his relationship with Chinese President Xi Jinping as cordial, saying, “I had a great relationship with him prior to Covid. He’s like my friend.”

Addressing Global Challenges

In the same interview, Trump addressed other pressing international issues. He criticized Russian President Vladimir Putin for the ongoing war in Ukraine and threatened “massive” tariffs and sanctions if the conflict continues. “I don’t want to do that, but we’ve got to get this war ended,” he said. Trump also had strong words for Ukrainian President Volodymyr Zelenskiy, describing his actions at the start of the conflict as less than exemplary, calling him “no angel.”

On North Korea, Trump praised leader Kim Jong Un as a “smart guy” and signaled his intention to reopen dialogue. While Kim hasn’t commented on Trump’s presidency, North Korea’s state media previously called past talks with the U.S. under Trump a confirmation of Washington’s “unchangeable” hostility.

Regarding Iran, Trump criticized its leadership as “religious zealots,” further emphasizing his hardline stance on global security threats.

What Experts Say

Bloomberg Economics noted that while Trump’s comments on China tariffs appear measured, it is unlikely he will abandon tariff threats entirely. Analysts emphasize the high stakes for China and the global economy if such actions are implemented.

With a week into his presidency, Trump’s statements highlight a balance between maintaining leverage and pursuing diplomacy in tackling complex international challenges.

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