U.S. President Donald Trump said his proposed 100% tariff on goods from China would not be sustainable, but blamed Beijing for the latest impasse in trade talks that began with Chinese authorities tightening control over rare earth exports.
Asked whether such a high tariff was sustainable and what that might do to the economy, Trump replied, “It’s not sustainable, but that’s what the number is.”
“They forced me to do that,” he said in an interview with Fox Business Network that was broadcast on Friday.
Trump unveiled additional levies of 100% on China’s U.S.-bound exports a week ago, along with new export controls on “any and all critical software” by November 1, nine days before existing tariff relief was set to expire.
The new trade actions were Trump’s reaction to China dramatically expanding its export controls on rare earth elements. China dominates the market for such elements, which are essential to tech manufacturing.
Trump also confirmed he would meet with Chinese President Xi Jinping in two weeks in South Korea – a meeting the U.S. president had cast doubt on last week – and expressed admiration for the Chinese leader.
“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 on FBN’s “Mornings with Maria,” which was taped on Thursday.
The softening in tone and affirmation of his intent to meet with Xi helped stem some of Wall Street’s early losses on Friday. Major U.S. stock indexes, which have been rattled over the last week by Trump’s abrupt reimposition of steep levies on Chinese imports and by credit worries among regional banks, were up modestly in early trading.
Meanwhile, in another indication of a potential thaw in the tensions,U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will hold a call on Friday to discuss ongoing trade negotiations between the two countries, CNBC reported on Friday, without disclosing a time for the call. A Treasury spokesperson did not immediately respond to a request for comment.
Bessent earlier in the week had accused one of He’s top aides of being “unhinged” in recent interactions with U.S. trade negotiators, an assertion Beijing has refuted.
(Reuters)
