U.S. President Donald Trump acknowledged that his proposed 100% tariff on Chinese imports would not be economically sustainable but defended the move as a necessary response to Beijing’s tightening control over rare earth exports.
“They forced me to do that,” Trump said in a Fox Business Network interview broadcast Friday. “It’s not sustainable, but that’s what the number is.”
The steep tariffs, announced last week, came alongside new U.S. export controls on critical software ahead of the Nov. 1 expiry of existing tariff relief. The escalation followed China’s dramatic expansion of export restrictions on rare earth elements — crucial materials for global tech manufacturing.
Despite the hard line, Trump struck a softer tone, confirming he will meet Chinese President Xi Jinping in two weeks in South Korea, reversing earlier doubts about the meeting. “I think we’re going to be fine with China, but we have to have a fair deal. It’s got to be fair,” Trump said.
Later, as he prepared for a working lunch with Ukrainian President Volodymyr Zelenskyy, Trump added: “China wants to talk, and we like talking to China.” His remarks and the planned meeting with Xi helped stabilize U.S. markets, which had been rattled by the tariff announcement and concerns about regional banks.
U.S. Treasury Secretary Scott Bessent said he would speak with Chinese Vice Premier He Lifeng to advance negotiations. “Things have de-escalated,” Bessent said. “We hope that China will show the respect that we have shown them, and I am confident that President Trump, because of his relationship with President Xi, will be able to get things back on a good course.”
The World Trade Organization (WTO) has urged both nations to reduce tensions, warning that long-term economic decoupling between the world’s two largest economies could shrink global output by 7%.
But friction remains. Bessent criticized China’s state-driven economic practices in a statement to the IMF’s steering committee, while China’s Commerce Ministry accused the U.S. of undermining multilateral trade rules and vowed to increase dispute actions at the WTO.
The upcoming Trump–Xi meeting will be closely watched as a potential turning point in an increasingly high-stakes economic confrontation.