Trump doubtful on another tariff pause, wants China concessions
WASHINGTON - President Donald Trump suggested another delay to his higher so-called “reciprocal” tariffs was unlikely, raising pressure on nations to negotiate trade deals with his administration.
Asked about the possibility of granting another 90-day pause, Trump cast that scenario as “unlikely,” while speaking to reporters aboard Air Force One on Friday. Trump also said that he would not drop tariffs on China, the world’s second-largest economy, unless Beijing offers “something substantial” in return.
Trump said he believed financial markets were adjusting to his tariff policy, downplaying the volatility that has hit equity and bond markets this month after he announced plans to hit about 60 U.S. trading partners with higher duties.
“When you look at what’s happening, I think so, yeah. I said there’d be a transition,” Trump said about the market reaction. “People haven’t understood it, now they are starting to understand it.”
Pressed on what concessions he’d like to see from Beijing, Trump said that he would like China to open its economy - but that he believed it was a non-starter so was not sure he would pursue it as part of the tariff talks.
“That would be great. That would be a big win. But I’m not even sure I’m going to ask for it, because they don’t want it open, they don’t want it open,” Trump said.
Friday saw a volatile session on Wall Street with stocks trimming most of the day’s advance as traders parsed the president’s conflicting signals about the progress he is making in tariff negotiations. The S&P 500 was still set for its longest winning run since January.
Trump in recent days has offered mixed messages about the status of talks with China, even as Beijing has denied that negotiations between the world’s two largest economies are taking place.
“We’re meeting with China. We’re doing fine with everybody,” Trump said in an interview with Time Magazine published earlier Friday.
But he also told Time he would not call President Xi Jinping if his Chinese counterpart does not call him first. Then Trump said such a call had occurred, without giving details.
“He’s called. And I don’t think that’s a sign of weakness on his behalf,” Trump said.
The U.S. president declined to answer when asked by reporters Friday when he spoke with Xi, saying, “I’ll let you know at the appropriate time. Let’s see if we can make a deal.”
Trump earlier this month announced sharp tariff increases on about 60 countries but then quickly paused those measures for three months to allow trading partners to negotiate deals, keeping in place a baseline 10% rate during the negotiating period. That set off a flurry of visits from foreign delegations eager to strike a deal, but Xi’s government has taken a more defiant stance.
In the Time interview, Trump also said he expected to wrap up trade deals with U.S. partners “over the next three to four weeks.”
“I’ll be finished. Now, some countries may come back and ask for an adjustment, and I’ll consider that, but I’ll basically be, with great knowledge, setting - ready,” he added.
In the interview, the president said that he has negotiated 200 trade deals but won’t say with whom.
Trump told reporters later Friday at the White House that he is “getting along very well with Japan” and an agreement is “very close.”
Trump in the interview also pushed back on reports that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick convinced him to delay his reciprocal tariffs and said he “wasn’t worried” about the turmoil in bond and equity markets that greeted his higher duties.
“They didn’t tell me. I did that,” Trump said. “The bond market was getting the yips, but I wasn’t.”
Consumer sentiment slides while inflation expectations jump
U.S. consumer sentiment fell to one of the lowest readings on record and long-term inflation expectations climbed to the highest since 1991 on fears of the economic fallout from tariffs.
The final April sentiment index fell to 52.2 from 57 a month earlier, according to the University of Michigan. While a slight improvement from the preliminary gauge of 50.8, the latest figure is the fourth-lowest in data back to the late 1970s.
Consumers anticipated inflation will rise at an annual rate of 4.4% over the next five to 10 years, the data out Friday showed. They expect prices to rise at a 6.5% pace over the next year. While down from a preliminary reading of 6.7%, year-ahead price expectations are still the highest since 1981.
The survey began March 25 and concluded April 21, a period that included Trump’s announcement of a 90-day pause on higher tariffs for dozens of U.S. trading partners..
In addition to stoking fears of higher inflation, the Trump administration’s trade policies are elevating anxiety about the economy and labor market. The university’s expectations index slumped to 47.3, the lowest since 2022, as 60% of respondents offered unsolicited comments about the hit from tariffs.
“Labor market expectations remained bleak,” Joanne Hsu, director of the survey, said in a statement. “Even more concerning for the path of the economy, consumers anticipated weaker income growth for themselves in the year ahead. Without reliably strong incomes, spending is unlikely to remain strong amid the numerous warnings signs perceived by consumers.”
The decline in consumer expectations was broad across demographic, income and political groups, the survey showed. Moreover, expectations for the economy, incomes, the stock market and homebuying conditions worsened from a month earlier.
About two-thirds of respondents see their inflation-adjusted incomes falling in the year ahead. Nearly as many expect unemployment to rise.
Corporate leaders are warning of more financial pain ahead for shoppers as companies pass along higher tariffs and commodities costs. Procter & Gamble Co. estimated on Thursday that the current and proposed levies could add between $1 billion and $1.5 billion to its annual costs. The consumer goods giant plans to counter that in part by raising prices on its products.
“Tariffs are inherently inflationary,” P&G Chief Executive Officer Jon Moeller told CNBC.
Expectations decreased in the University of Michigan survey across political lines. For Democrats and political independents, they worsened to a fresh record low. Among Republicans, expectations dropped to a five-month low.
The current conditions gauge declined 4 points from a month earlier to 59.8, but improved from the 56.5 preliminary reading due to the pause in tariffs.
Bloomberg News writers Magan Crane, Josh Wingrove and Nazmul Ahasan contributed to this report.
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This story was originally published April 25, 2025 at 4:16 PM