Washington (TDI): US President Donald Trump acknowledged that his proposed 100% tariffs on Chinese imports would be unsustainable in the long term, but blamed Beijing for triggering the latest breakdown in trade talks by tightening its controls on rare-earth exports.
When asked whether such a high tariff rate could be maintained without harming the US economy, Trump replied, “It’s not sustainable, but that’s what the number is.”
Speaking in an interview with Fox Business Network aired Friday, Trump said Beijing’s policies had “forced” his hand, prompting him to reintroduce steep tariffs and impose fresh restrictions on critical software exports starting November 1, just days before existing tariff relief was set to expire.
The new measures, announced last week, were a response to China’s expanded export controls on rare-earth elements, key materials used in the manufacturing of electronics and defense technologies.
Despite the tensions, Trump confirmed he would meet Chinese President Xi Jinping in South Korea in two weeks, expressing cautious optimism. “I think we’re going to be fine with China, but we have to have a fair deal. It’s got to be fair,” he said in the interview taped Thursday.
Read More: Trump Hits China with 100% Tariffs, Beijing Strikes Back
Later, before meeting Ukrainian President Volodymyr Zelensky at the White House, Trump reiterated that Washington remained open to talks. “China wants to talk, and we like talking to China,” he said.
Trump’s comments signaled a modest easing of tone that helped calm Wall Street. Major US stock indexes, shaken earlier by tariff worries and renewed banking sector stress, rebounded in afternoon trading on Friday, according to Reuters.
US Treasury Secretary Scott Bessent also spoke with Chinese Vice Premier He Lifeng on Friday evening in what he described as “frank and detailed discussions” about trade, confirming that the two would meet in person next week.
Read More: Trump Signals Progress Toward ‘Very Fair’ Trade Deal with China
World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala urged both Washington and Beijing to step back from their escalating trade confrontation, warning that a prolonged decoupling between the world’s two largest economies could shrink global output by as much as 7% over time.
