WASHINGTON — U.S. President Donald Trump on Friday admitted that his proposed 100% tariff on Chinese imports would not be economically sustainable, but insisted Beijing’s actions forced Washington into the latest trade escalation.
“It’s not sustainable, but that’s what the number is,” Trump said in an interview with Fox Business Network, when asked about the impact of such steep tariffs on the U.S. economy. “They forced me to do that,” he added.
The move came after China tightened export controls on rare-earth elements, which are vital for global technology manufacturing. In response, Trump imposed 100% tariffs on Chinese goods and new export restrictions on “critical software” to take effect November 1, just before existing tariff relief was due to expire.
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Despite the aggressive stance, Trump expressed optimism about talks with Chinese President Xi Jinping, confirming a planned meeting in South Korea within two weeks. “I think we’re going to be fine with China, but we have to have a fair deal,” Trump said, adding that “China wants to talk, and we like talking to China.”
His remarks helped calm Wall Street, where early losses reversed after markets took the upcoming Trump–Xi meeting as a positive sign.
Meanwhile, U.S. Treasury Secretary Scott Bessent said he held “frank and detailed discussions” with Chinese Vice Premier He Lifeng, and both sides would meet in person next week.
World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala urged both countries to de-escalate tensions, warning that a prolonged U.S.–China economic rift could shrink global output by up to 7% over time.
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She said the WTO is “extremely concerned” about the renewed confrontation and has engaged both sides to encourage dialogue.
However, tensions persisted. At an IMF meeting, Bessent criticized China’s state-driven industrial policies, accusing Beijing of creating excess manufacturing capacity that distorts global trade.
China hit back, accusing Washington of “undermining the multilateral trading system” since 2025 and said it would intensify dispute-settlement cases at the WTO.
The Chinese Commerce Ministry also called on the U.S. to withdraw discriminatory trade measures and align its industrial policies with WTO obligations.
The latest flare-up underscores the fragile state of the world’s two largest economies’ relationship — one that continues to test global supply chains, market stability, and the multilateral trading system itself.