Trump Softens on 100% China Tariffs: ‘Not Sustainable’ – But Xi Jinping Meeting Still On Track
In a whirlwind of trade rhetoric that’s become his trademark, President Donald Trump admitted Friday that slapping 100% tariffs on Chinese goods isn’t a long-term fix, even as he gears up for a high-stakes sit-down with President Xi Jinping next month. The backpedal came amid escalating tensions over rare earth exports, a spat that’s rattling global markets and hitting American consumers where it hurts – right in the wallet.
The drama kicked off last week when Trump fired off a Truth Social post announcing the eye-watering 100% levy on all Chinese imports, effective November 1, layered “over and above” existing duties that already hover around 30%. This wasn’t a bluff; it was retaliation for Beijing’s bold move to tighten export controls on rare earth elements – those obscure minerals powering everything from iPhones to electric car batteries. China controls about 80% of the world’s supply, giving it massive leverage in the tech arms race. Trump called it “sinister and hostile,” even floating the idea of ditching a planned meeting with Xi at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea. But in a Fox Business interview taped Thursday, the tone shifted: “It’s not sustainable, but that’s what the number is… They forced me to do that.” He pinned the blame squarely on China for “ripping off America for years,” echoing his long-standing gripes about unfair trade practices.
Background on this tariff tango? It’s straight out of Trump’s playbook since his January inauguration. He’s hiked duties on Chinese goods to peaks of 145% before, only to dial them back after tense negotiations – dropping to 30% on the U.S. side and 10% from Beijing after recent talks. The current flare-up ties into broader U.S. export controls on critical software set for November 1, just as a temporary tariff pause expires. Beijing fired back, slamming the U.S. for “arbitrary double standards” and hinting at countermeasures that could spike prices on American soybeans and Boeing jets. Trump’s not backing down entirely – he doubled down on export curbs – but confirming the Xi meetup signals room for deal-making. “I get along great with him,” Trump said, adding, “China wants to talk, and we like talking to China.” The summit, slated for late October in Busan, could be the stage for hashing out a “fair deal.”
Public reactions? Wall Street breathed a sigh of relief – early Friday dips reversed after Trump’s softer comments, with the Dow clawing back 150 points. Conservative voices on X cheered the initial tariff threat as “America First muscle,” with one viral post from a MAGA influencer declaring, “Finally holding China accountable – no more free rides!” But economists aren’t popping champagne. Peter Navarro, Trump’s trade guru from his first term, warned in a CNBC hit that 100% tariffs could “ignite inflation we haven’t seen since the ’70s,” estimating a $2,000 annual hit per U.S. household on imported goods. On the flip side, tech lobbyists like the Consumer Technology Association praised the Xi meeting as a “pragmatic pivot,” noting rare earth shortages could cripple U.S. chipmakers like Intel and Nvidia. Beijing’s state media struck a defiant note, with Global Times tweeting that any deal must respect “mutual respect” – code for no more U.S. bullying.
For everyday Americans, this Trump tariffs China showdown feels personal. Economically, it’s a gut punch: Higher duties mean pricier gadgets, cars, and clothes – think an extra 20% on your next Walmart run for Chinese-made toys or TVs. A Peterson Institute study pegs the full 100% rollout at a 1.5% GDP drag, potentially stoking inflation to 4% by year’s end and squeezing middle-class budgets already strained by post-pandemic recovery. Politically, it’s red meat for Trump’s base in Rust Belt states like Ohio and Pennsylvania, where manufacturing jobs vanished to overseas factories – but it risks alienating farmers hit by Chinese soy tariffs. Lifestyle-wise, if rare earth curbs stick, expect delays in EV rollouts from Ford and GM, slowing the green tech boom that’s creating blue-collar gigs in Michigan. Tech-savvy millennials grinding in Silicon Valley? They’re sweating supply chain snarls that could jack up laptop prices just before Black Friday. And sports fans – yeah, even the NBA’s China ties (remember the Daryl Morey fiasco?) could get awkward if tensions boil over into cultural boycotts.
User intent here is laser-focused: Folks Googling “Trump tariffs China” want the straight dope on whether this escalates into a full-blown trade war or fizzles into a handshake deal. They’re eyeing stock portfolios, holiday shopping lists, and election vibes – is this genius negotiation or reckless brinkmanship? Managing the spin means cutting through the bluster: Trump’s history shows tariffs as leverage, not forever policy. Pair it with workouts? Nah, but tracking apps like Yahoo Finance can help monitor Dow swings tied to every Trump tweet.
As Trump preps for that White House lunch with Ukraine’s Zelenskiy – a reminder of his multi-front foreign policy juggling act – the Xi summit looms as a potential turning point. With Treasury Secretary Scott Bessent floating tariff pause extensions and Apple CEO Tim Cook huddling with Chinese negotiators this week, de-escalation feels within reach. Trump wrapped his Fox chat optimistically: “I think we’re going to be fine with China, but we have to have a fair deal.” Markets are betting on talk over tariffs; a Xi deal could unlock billions in trade flows, stabilizing prices and boosting U.S. exports. Yet if Beijing digs in on rare earths, expect more fireworks – because in Trump’s world, unsustainable threats are just the opening bid in the art of the deal.
By Sam Michael
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