Trump Softens Tone on China Trade, Citing Beijing's Export Controls
US President Donald Trump has backed away from his earlier stance on imposing 100% tariffs on goods from China, citing Beijing's tightening control over rare earth exports as the reason for the latest impasse in trade talks. Trump's comments came in an interview with Fox Business Network, where he stated that the high tariff was "not sustainable" but was necessary due to China's actions. Trump also confirmed plans to meet with Chinese President Xi Jinping in two weeks in South Korea, a move that has helped ease some of the concerns on Wall Street.
Key Takeaways:
- Trump has proposed a 100% tariff on goods from China, citing Beijing's tightening control over rare earth exports as the reason for the latest impasse in trade talks.
- Trump has expressed admiration for Chinese President Xi Jinping and confirmed plans to meet with him in two weeks in South Korea.
- The meeting between Trump and Xi is seen as a potential thaw in the tensions between the two countries, and helped ease some of the concerns on Wall Street.
- US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will hold a call on Friday to discuss ongoing trade negotiations between the two countries.
- Trump has accused Beijing of manipulating trade and imposing unfair tariffs, but has also expressed a desire for a fair deal.
Statistics:
- 100% tariff proposed by Trump on goods from China
- 9 days left before existing tariff relief was set to expire
- November 1 is the deadline for new export controls on "any and all critical software"
- US major stock indexes were up modestly in early trading on Friday
- Rare earth elements are essential to tech manufacturing and are dominated by China in the global market
Sources:
- Fox Business Network (interview with President Trump)
- CNBC (report on US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng's call)
- Saudi Research and Publishing Co.