In a significant turnaround just two weeks before his scheduled meeting with Chinese President Xi Jinping, U.S. President Donald Trump has admitted his recently proposed 100% tariffs on Chinese goods are “not sustainable.”
The concession marks a distinct softening of tone just days after the administration announced the punitive levies and controls on critical software—a move that had rattled global markets and escalated the trade conflict.
When questioned by Fox Business Network about the economic impact and sustainability of such a steep tariff rate, President Trump’s reply was direct.
“It’s not sustainable, but that’s what the number is,” he said.
While admitting the policy’s practical limits, Trump immediately shifted the blame to Beijing. He claimed China had “forced” the action by dramatically tightening its export controls on rare earth elements—materials essential for all modern tech manufacturing, a market China overwhelmingly dominates.
“They forced me to do that,” Trump told the network in the interview broadcast on Friday. The new 100% tariffs and the November 1st deadline for new export controls were the administration’s countermeasure to Beijing’s strategic move to weaponize its control over these critical materials.
Easing Tensions Before the Summit
The key development now centers on the diplomatic path forward. Trump confirmed he will meet with President Xi Jinping in South Korea in two weeks, a meeting he had recently cast into doubt. His tone toward the Chinese leader was notably conciliatory, expressing a degree of admiration.
“I think we’re going to be fine with China, but we have to have a fair deal. It’s got to be fair,” Trump stated.
This strategic softening had an immediate, tangible effect. Wall Street indices, which had been suffering sharp losses over the tariff escalation, saw modest gains in early trading on Friday. The market appears to be breathing a sigh of relief as the prospect of direct talks now seems firmer.
Further signaling a potential thaw, U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to hold a phone call on Friday to discuss ongoing negotiations. This high-level communication comes despite Bessent earlier in the week accusing one of He’s top aides of “unhinged” behavior in prior interactions, an assertion Beijing rejected.
The convergence of Trump’s public retreat on the 100% tariff, his confirmed meeting with Xi, and the renewed high-level Treasury talks all suggest a tactical de-escalation is underway, opening a window for a resolution.
