U.S. President Donald Trump acknowledged on Friday, October 17, 2025, that imposing 100% tariffs on Chinese imports isn’t feasible over time.
He attributed the ongoing trade deadlock to Beijing’s stricter rules on rare earth exports, essential for global technology production.
During a Thursday-recorded Fox Business interview aired Friday, Trump discussed the potential economic fallout. “That rate isn’t viable forever, but it’s our current plan,” he noted. “Beijing’s actions left me no choice.”
Background on Recent Trade Moves
Trump rolled out the steep tariffs on Chinese shipments to the U.S. last week. He also imposed restrictions on key software exports starting November 1, right as prior tariff exemptions end. These measures directly countered China’s broader curbs on rare earth minerals, where it holds a dominant position.
Such steps have intensified the U.S.-China economic standoff. Trump’s goal is to address perceived imbalances, though they could trigger supply chain issues and higher costs.
Plans for High-Level Talks
Trump affirmed upcoming talks with China’s Xi Jinping in South Korea in about two weeks, shifting from recent skepticism. “We’ll resolve this with China, provided it’s equitable,” he remarked, offering compliments for Xi.
This moderated stance steadied financial markets somewhat. Following declines tied to the tariffs and domestic banking issues, major U.S. equity benchmarks climbed modestly early Friday.
Potential for Dialogue
U.S. Treasury head Scott Bessent is set to discuss trade matters with Chinese Vice Premier He Lifeng via call on Friday, without a specified time.
This follows Bessent’s recent sharp criticism of a Chinese negotiator as erratic, a charge denied by Beijing. The dialogue hints at thawing relations.
Economic Ripple Effects
Fears of trade disruptions and a government funding lapse have rattled investors, but Trump’s emphasis on equity and the Xi summit provided some reassurance. Close watch continues on how these could affect industries dependent on rare earth supplies.
Path Forward
The Bessent-He Lifeng discussion might yield progress ahead of the November deadline. Trump’s approach mixes firmness with openness to talks.
While the Xi encounter could ease strains, ongoing export limits pose hurdles. Companies prepare for shifts that may alter international commerce.
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