Trump: China Tariffs Unsustainable Ahead Key Meeting

Background

US President Donald Trump stated that the high tariffs imposed on Chinese goods are “unsustainable,” highlighting concerns over the prolonged economic impact of the trade dispute between the two countries. The remarks were made during an interview with Fox Business and come just before a highly anticipated meeting between Trump and Chinese President Xi Jinping.

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With trade tensions reigniting, Trump acknowledged that the elevated tariffs could have long-term negative effects. He commented, “This is unsustainable,” and suggested that although the tariff rates “could probably have been stopped,” actions taken by the Chinese government had compelled him to implement them, as reported by Fox Business.

Ongoing Trade Tensions and Negotiations

The prospect of raising import tariffs on Chinese products to as much as 145% has sparked concerns about global trade stability. Last week, Trump indicated a willingness to impose an additional 100% tariff on Chinese goods by November 1st. These proposals followed China’s announcement of new restrictions on rare earth mineral exports—a strategic sector in global technology manufacturing.

Efforts to resolve the dispute continue. Trump noted, “We’re doing very well with China. Talks are progressing,” at a White House event. He expressed optimism that his planned meeting with President Xi would proceed and could pave the way for a comprehensive agreement aimed at alleviating trade pressures. The current 90-day ceasefire on new tariffs is scheduled to expire on November 10th.

US Treasury Secretary Scott Bessent also projected optimism, confirming meetings with Chinese Vice Premier He Lifeng in Malaysia next week. Bessent stated, “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.”

Market Reaction and What’s Next

The trade dispute between the US and China continues to influence global markets, with investors closely watching both nations’ next moves on tariffs and regulatory restrictions. Washington’s expansion of technology-related export controls and proposed new tariffs on Chinese shipping are viewed as major catalysts for Beijing’s latest restrictions on rare earth supply.

Both sides have shown cautious optimism that diplomatic engagement may lead to progress on trade issues. Trump reiterated his belief that a “lasting trade peace” could result from direct talks, stating, “The meeting is proceeding as planned. They want to meet, and so do we.”

Further developments are expected following the expiration of the current ceasefire and after talks held between high-level US and Chinese officials in the coming weeks.

For more updates on US-China trade developments and their impact on the global economy, visit our cryptocurrency section.