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Trump says 100% tariffs on China not sustainable, still plans to meet Xi
US 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.
Later, as he was preparing to have a lunch at the White House with Ukrainian President Volodymyr Zelenskiy to discuss efforts to end its war with Russia, Trump said: "China wants to talk, and we like talking to China."
The softening in tone and affirmation of his intent to meet with Xi helped stem Wall Street's early losses on Friday. Major U.S. stock indexes, which have been rattled over the last week by Trump's abrupt re-imposition of steep levies on Chinese imports and by credit worries among regional banks, were up in afternoon trading.
U.S. Treasury Secretary Scott Bessent at the White House event said he would speak with his counterpart, Chinese Vice Premier He Lifeng, later on Friday to discuss ongoing trade negotiations between the two countries.
I think that 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 head of the World Trade Organization said she urged the U.S. and China to de-escalate trade tensions, warning that a decoupling by the world's two largest economies could reduce global economic output by 7% over the longer term.
WTO Director-General Ngozi Okonjo-Iweala told Reuters in an interview the global trade body was extremely concerned about the latest spike in U.S.-China trade tensions and had spoken with officials from both countries to encourage more dialogue.
But tensions continued to run high, even as Trump and Xi prepared to meet.
Bessent took aim at China's state-driven economic practices in a statement to the IMF's steering committee on Friday, urging the IMF and World Bank to take a tougher stance on China's external and internal balances and industrial policies that U.S. officials say have helped China build up excess manufacturing capacity that is flooding the world with cheap goods.
And China's Commerce Ministry on Friday accused the U.S. of undermining the rules-based multilateral trading system since the Trump administration took office in 2025, vowing to intensify its use of dispute settlement actions at the WTO.
It also urged Washington to roll back measures that breach non-discrimination rules and align its industrial and security policies with WTO obligations.
Bessent earlier in the week had accused one of He's top aides of being "unhinged" in recent interactions with U.S. trade negotiators. Beijing on Thursday said Bessent's remarks "seriously distort the facts."
Source: HindustanTimes
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