President Trump says the 100%-plus tariffs he’s threatened to impose on China would not be sustainable and that he still plans to meet Chinese President Xi Jinping at a summit in South Korea.
Mr. Trump’s comments signaled an attempt to de-escalate tensions between the world’s two largest economies, though he maintained that China “did a number” on the U.S., so he needs to respond strongly.
He recently threatened to add the 100% tariff on Chinese goods, effective Nov. 1, on top of existing levies as punishment for Beijing’s decision to severely restrict rare earth elements and other goods that global companies rely on.
“It’s not sustainable, but that’s what the number is,” Mr. Trump told Fox Business host Maria Bartiromo. “It’s probably not. You know, it could stand. But they forced me to do that.”
He added, “China has ripped us off from Day 1.”
U.S. and Chinese officials have worked for months to maintain dialogue over trade and keep a lid on destabilizing tariffs on each other’s products.
A series of meetings in third-party countries helped both sides reach a truce on trade, though suddenly the nations are at each other’s throats again.
China said it decided to impose severe restrictions on rare earths to safeguard its interests and as payback for U.S. moves that restricted exports of certain technology to China and imposed docking fees on Chinese ships at American ports.
Treasury Secretary Scott Bessent accused a specific Chinese official, Li Chenggang, of acting disrespectfully at earlier meetings.
However, Mr. Bessent planned to speak to China’s top trade official, He Lifeng, on Friday evening as part of an ongoing dialogue.
Mr. Trump said the Chinese have taken advantage of the U.S., going back to President Richard Nixon’s China-opening trip there in 1972, but signaled he plans to work out a deal at the Asia-Pacific Economic Cooperation forum later this month.
“I think we’re going to do fine with China. I get along great with him. He’s a very strong leader — a very, you know, amazing man,” Mr. Trump said of Mr. Xi. “I think we’re gonna be fine with China, but we have to have a fair deal. It’s gotta be fair.”
He added, “We’re gonna meet in a couple of weeks. We’re gonna meet in South Korea, actually, with President Xi and other people, too.”
At the White House, Mr. Bessent said Friday he would meet with a Chinese delegation in Malaysia ahead of the APEC summit in South Korea.
Wall Street is sensitive to shocks in the U.S.-China trade relationship. Major indexes dived because of Mr. Trump’s tariff threat on Oct. 10, only to rebound and sink again on unrelated fears related to bad loans made by regional banks.
The administration says its decisions on China won’t be tethered to investor sentiment.
“We won’t negotiate because the stock market is going down,” Mr. Bessent said in a CNBC-hosted discussion on Tuesday. “We will negotiate because we are doing what is best economically for the U.S.”
