Trump admits 100% tariffs on China are unsustainable but confirms plans to meet Xi Jinping

U.S. President Donald Trump has acknowledged that his proposed 100% tariffs on Chinese goods are unsustainable, even as he holds China responsible for the latest impasse in trade talks. The announcement comes amid heightened tensions over China’s expanded control on rare earth exports, crucial for technology manufacturing. Despite the friction, Trump confirmed his plans to meet Chinese President Xi Jinping in South Korea in the coming weeks.

Trump Admits Tariffs Unsustainable

In an interview with Fox Business Network, Trump was asked about the feasibility of imposing a 100% tariff on Chinese imports and its economic impact. He admitted, “It’s not sustainable, but that’s what the number is.” He further explained that China’s actions forced the U.S. to take this drastic measure.

The president unveiled the additional levies last week, alongside new export controls on “any and all critical software” to be effective by November 1. These measures came just days before the expiration of prior tariff relief, reflecting a rapid escalation in U.S.-China trade tensions.

China’s Role in Trade Tensions

The trade escalation stems from China’s decision to expand export controls on rare earth elements, materials critical to high-tech manufacturing. China dominates the global market for these elements, and the U.S. views Beijing’s actions as a major strategic and economic challenge. Trump framed the tariffs as a necessary response to these aggressive export restrictions.

Upcoming Meeting with Xi Jinping

Despite the heated rhetoric, Trump confirmed he will meet Chinese President Xi Jinping in South Korea in two weeks. The U.S. president described the interaction as an opportunity to secure a “fair deal” with China, emphasizing his intent to negotiate constructively.

“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 Fox Business Network’s Mornings with Maria. His softened tone and confirmation of the meeting helped ease early losses in Wall Street trading.

Wall Street Reacts

Financial markets have been sensitive to the abrupt reimposition of steep tariffs on Chinese goods and the broader impact on U.S. economic growth. On Friday, major U.S. stock indexes rose modestly in early trading, reflecting optimism about a potential thaw in trade tensions after Trump’s reassurances regarding talks with Xi Jinping.

Ongoing Trade Negotiations

Adding to the cautious optimism, U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng scheduled a call to discuss ongoing trade negotiations. CNBC reported the call would take place on Friday, although the exact time was not disclosed.

Earlier in the week, Bessent had criticized one of He’s top aides as being “unhinged” in dealings with U.S. negotiators—a claim Beijing rejected. These communications reflect ongoing efforts on both sides to navigate a complex trade landscape while seeking common ground on economic and regulatory issues.

Strategic Implications

Trump’s acknowledgment that the tariffs are unsustainable, coupled with his commitment to meet Xi Jinping, signals a pragmatic approach amid escalating trade tensions. While the tariffs are a direct response to China’s export controls on rare earths, the upcoming talks may offer an opportunity to stabilize U.S.-China trade relations and prevent further economic disruption.

Conclusion

The U.S.-China trade relationship remains delicate, with high stakes for global markets and technology supply chains. Trump’s dual approach—asserting tariffs while planning direct engagement with Xi Jinping—demonstrates an effort to balance pressure with negotiation. Investors, policymakers, and businesses worldwide will be closely monitoring developments, particularly the outcome of the high-level meetings and ongoing discussions between U.S. and Chinese officials.