Trump threatens 155% tariffs on China
What's the story
US President Donald Trump has warned that he may impose tariffs as high as 155% on Chinese goods from November 1, if a trade deal is not finalized. The warning was issued during a meeting with Australian Prime Minister Anthony Albanese at the White House. Despite the tough stance, Trump remained optimistic about reaching a fair and beneficial trade agreement with Chinese President Xi Jinping.
Trade optimism
Trump optimistic about reaching fair trade deal with Xi
Trump said that China has been "very respectful" and is already paying "tremendous amounts of money" in tariffs. He also expressed confidence in securing a fair trade deal with Xi after their upcoming meeting in South Korea. The US President emphasized the importance of these talks for a healthy US-China relationship.
Tariff escalation
100% tariff on Chinese imports announced earlier
Earlier this month, Trump announced an additional 100% tariff on top of existing duties and export controls on all critical software starting November 1. The decision came after China's move to impose export restrictions on rare earths essential for high-tech goods and defense systems. "These export controls affect virtually every product China makes and some products they don't. This is unheard of in international trade," Trump said in a Truth Social post.
Trade tensions
Tariff threat not proper way to engage with China: Beijing
In response to Trump's comments, Chinese foreign ministry spokesperson Lin Jian said that threatening tariffs was "not the proper way to engage with China." Meanwhile, China has tightened export controls on rare earths and other materials used in electronics and renewable energy, citing national security concerns. The restrictions are expected to further strain global supply chains.
Negotiator shift
Trump's tariff warning comes as China replaces chief trade negotiator
The tariff warning from Trump comes as China has replaced its chief trade negotiator. Li Yongjie, a deputy international trade representative, has taken over from Li Chenggang. A recent video conference between Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer reportedly resulted in a productive exchange.