U.S. President Donald Trump has acknowledged that his proposed 100% tariff on Chinese goods would be difficult to sustain in the long term, even as he attributed the latest breakdown in trade discussions to Beijing’s tightening grip on rare earth exports.
When asked about the economic impact of such steep tariffs, Trump admitted, “It’s not sustainable, but that’s what the number is,” adding that China’s recent actions had “forced” his administration to respond.
The president unveiled the new round of 100% tariffs last week, alongside additional export restrictions on critical software set to take effect on November 1, just days before existing tariff relief measures were due to expire. The move came after China expanded its export controls on rare earth elements — materials essential to the production of advanced technology and electronics — intensifying trade tensions between the two global powers.
Despite the escalation, Trump confirmed that he still plans to meet Chinese President Xi Jinping in South Korea within the next two weeks, a meeting he had previously suggested might not happen. Expressing respect for Xi, Trump stated, “I think we’re going to be fine with China, but we have to have a fair deal. It’s got to be fair.”
The president’s comments, signaling a slightly softer stance, helped ease investor anxiety following a turbulent week on Wall Street. Markets had been unsettled by both the sudden tariff hikes and growing concerns over regional banking stability.
In a related development, U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are expected to hold a virtual discussion on Friday to advance ongoing trade negotiations. The meeting follows a week of heated exchanges between both sides, with U.S. officials accusing some Chinese counterparts of being overly confrontational — a claim Beijing has dismissed.
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