U.S. President Says 100% Tariff on Chinese Goods ‘Not Sustainable’,

Reuters

U.S. President Donald Trump.

U.S. President Donald Trump announced that his proposed 100% tariff on Chinese imports would not be sustainable in the long term, while attributing the latest deadlock in trade negotiations to Beijing’s decision to tighten control over rare earth exports.

When asked whether such a steep tariff was economically viable, President Trump conceded: “It’s not sustainable, but that’s what the number is.” Speaking in an interview with Fox Business Network, broadcast on Friday, he added, “They forced me to do that.”

The United States last week imposed additional 100% levies on Chinese exports bound for the U.S., alongside new export restrictions on “any and all critical software” beginning 1 November — nine days before existing tariff relief was due to expire. 

The measures were introduced in response to China’s move to expand its export controls on rare earth elements, which are crucial to global technology manufacturing. China remains the world’s dominant supplier of these materials.

President Trump also confirmed he would meet Chinese President Xi Jinping in South Korea in two weeks — a meeting he had previously cast doubt on — and expressed a degree of respect for his counterpart. “I think we’re going to be fine with China, but we have to have a fair deal. It’s got to be fair,” President Trump said during the pre-recorded interview on Mornings with Maria.

His softened rhetoric and the prospect of renewed talks helped temper early losses on Wall Street. Major U.S. indices, which had been unsettled by the sudden reimposition of steep tariffs and lingering concerns over regional bank stability, were trading slightly higher in early sessions on Friday.

In a potential sign of easing tensions, U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were expected to hold a call on Friday to discuss ongoing negotiations, according to CNBC. The network did not specify a time for the discussion, and the U.S. Treasury Department has yet to comment.

Earlier in the week, Bessent accused one of He’s senior aides of being “unhinged” during recent interactions with U.S. negotiators — an allegation that Beijing has strongly denied.

The dollar, meanwhile, is on course for its largest weekly decline in nearly three months amid renewed concerns about the U.S. banking sector.

Source: Reuters



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