On Friday, October 17, 2025, U.S. President Donald Trump admitted his proposed 100% tariffs on Chinese goods are not sustainable.
He pointed to China’s tightened rare earth export controls as the reason for stalled trade talks.
In a Fox Business Network interview taped Thursday, Trump addressed the tariffs’ economic impact. “It’s not sustainable, but that’s the figure,” he said. “China forced my hand.”
Trade Tensions Escalate
A week ago, Trump introduced 100% tariffs on China’s U.S. exports and set new controls on critical software by November 1, just before tariff waivers expire.
This responded to China’s expanded limits on rare earth elements, key for tech manufacturing, where China leads globally.
These actions have deepened U.S.-China trade disputes. Trump aims to counter unfair practices, but the tariffs risk economic disruptions.
Xi Meeting Confirmed
Trump confirmed a meeting with Chinese President Xi Jinping in South Korea in two weeks, reversing earlier doubts. “We’ll sort things out with China, but it must be fair,” he said, praising Xi.
His softer tone calmed markets. After losses from tariffs and bank concerns, U.S. stock indexes rose slightly Friday morning.
Signs of Progress
A Friday call between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will address trade talks, though no time was set.
Earlier, Bessent labeled a Chinese aide “unhinged” in negotiations, a claim Beijing rejected. The call signals possible de-escalation.
Market and Economic Effects
Tariffs and shutdown fears have unsettled markets, but Trump’s comments on fairness and the Xi meeting eased some concerns. Investors monitor impacts on tech supply chains reliant on rare earths.
Future Outlook
The Bessent-He Lifeng call could advance talks before November 1. Trump’s tariff stance balances pressure with negotiation.
The Xi meeting may reduce tensions, but export controls remain a challenge. Businesses brace for outcomes that could reshape global trade.
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