Trump Says 100% Tariffs on China Not Sustainable

Post by : Saif Ali Khan

U.S. President Donald Trump has said that his proposed 100% tariff on Chinese goods would not be sustainable, but he blamed China for the current deadlock in trade talks between the two countries. The statement comes amid growing tensions over China’s control of rare earth exports, which are crucial for technology manufacturing.

Background on the Tariffs

Trump announced new tariffs of 100% on goods from China last week, in addition to stricter export controls on critical software that will take effect by November 1. These measures were introduced just before the previous tariff relief was set to expire. According to Trump, China’s actions forced the United States to respond in this way.

Rare earth elements are vital for electronics, renewable energy, and military equipment. China is the leading global supplier, giving it significant influence over the technology market. The U.S. sees China’s tightened export control as a serious threat to its industries and national security, prompting the Trump administration to take these strong measures.

Trump’s Comments on Sustainability

When asked if such high tariffs could be maintained, Trump admitted, “It’s not sustainable, but that’s what the number is.” This means that while a 100% tariff is extreme and could affect American businesses and consumers, it is being used as leverage in the negotiations with Beijing.

Trump also emphasized the need for a “fair deal” with China. He expressed confidence that relations with China could improve, stating, “I think we’re going to be fine with China, but we have to have a fair deal. It’s got to be fair.”

Upcoming Meeting with Xi Jinping

Despite tensions, Trump confirmed he will meet Chinese President Xi Jinping in two weeks in South Korea. Last week, he had expressed doubt about whether the meeting would happen. The planned summit is expected to focus on trade, tariffs, and export controls, with the goal of reaching a more balanced and fair agreement for both countries.

Impact on the Economy

Economists warn that extremely high tariffs like 100% could increase prices for U.S. consumers and slow down American companies that rely on Chinese imports for production. At the same time, they could pressure China to negotiate and reduce restrictions on rare earth exports.

Trump’s strategy reflects his administration’s focus on using trade tools to achieve economic and strategic goals. It also highlights the challenges in balancing strong trade actions with the risks they pose to domestic markets.

The U.S.-China trade talks remain fragile, with tariffs, export controls, and rare earth issues at the center of the dispute. While Trump acknowledges that a 100% tariff is not sustainable, it is being used as a negotiating tactic to secure a “fair deal” from China. The upcoming meeting between Trump and Xi Jinping will be closely watched by businesses, governments, and investors around the world, as any agreement could have significant global consequences.