Trump Hints at Softer China Tariff Policy Before Xi Meeting
President Donald Trump said on Friday that the high tariffs on Chinese goods are not expected to remain in place long-term, suggesting a possible shift in U.S.-China trade relations ahead of his meeting with Chinese President Xi Jinping.
“It’s not sustainable,” Trump told Fox Business when asked whether the current tariff levels could continue. “It could stand, but they forced me to do that,” he added, referencing China’s past trade behavior.
Trump Confirms Upcoming Meeting with Xi
Trump revealed he will meet President Xi in South Korea in two weeks, hinting that the discussion could reopen the door for trade negotiations between the two largest economies in the world.
“I think we’ll be fine with China,” Trump said confidently during the interview, a clip of which aired Friday.
Critical of China’s Trade Practices
Despite his softer tone on tariffs, Trump maintained his critical stance on China’s trade record. “They’re always looking for an edge. They ripped off our country for years,” he said. “China — boy, they did a number on our country. They took money out. Now, it’s reversed.”
Trump emphasized that his administration’s approach toward Beijing is rooted in strength and strategic pressure. “We have a very strong adversary, and they only respect strength,” he stated.
Market Reaction and Background
Trump’s remarks come a week after he threatened to impose 100% tariffs on Chinese imports starting November 1, in response to China’s restrictions on rare earth mineral exports.
Financial markets reacted immediately to Trump’s softer rhetoric, with S&P 500 and Nasdaq futures trimming earlier losses following the comments, though they still closed lower for the day.
The remarks add cautious optimism to a tense U.S.-China trade environment, as investors await potential outcomes from Trump’s upcoming meeting with Xi Jinping.
