US President Donald Trump said the high tariffs he threatened against China were “unsustainable.”
At a time when tensions between the US and China are escalating again, Trump’s statements came ahead of the anticipated face-to-face meeting between the leaders of the two countries.
In an interview with Fox Business, Trump acknowledged that the planned higher tariffs on Chinese goods could have a negative impact on the economy in the long run. “This is unsustainable,” he said, adding, “This rate could probably have been stopped, but they forced me to do it.”
Trump and Treasury Secretary Scott Bessent offered optimistic messages, saying talks with Chinese officials could pave the way for a comprehensive agreement that could ease trade tensions. Threats that the US could raise import tariffs on Chinese products to as much as 145% have fueled global trade concerns.
“We’re doing very well with China. Talks are progressing,” Trump said at a White House event, adding that he believed the planned meeting with Chinese President Xi Jinping would take place.
Last week, Trump announced that he could impose an additional 100% tariff on Chinese goods by November 1st and that he was considering canceling an expected meeting with Xi. This announcement came after China imposed new restrictions on rare earth exports. The 90-day temporary ceasefire between the two sides is expected to expire on November 10th.
Washington’s expansion of technology restrictions and proposed new tariffs on Chinese ships have accelerated Beijing’s plans to impose tighter controls on rare earths exports.
Despite this, Trump reiterated his belief that the upcoming meeting could lead to a lasting trade peace. “I think so,” he said. “The meeting is proceeding as planned. They want to meet, and so do we.”
US Treasury Secretary Scott Bessent announced plans to meet with Chinese Vice Premier He Lifeng in Malaysia next week, saying, “Tensions have eased. We hope China will show the same respect we’ve shown to us. I’m confident that President Trump, through his relationship with Xi, will move the process in the right direction.”
*This is not investment advice.