President Donald Trump has admitted that his threat to impose a 100% tariff on all Chinese imports is “not sustainable.” Meanwhile, he plans to meet with Xi Jinping in South Korea soon to ease trade tensions between the two countries.
China recently introduced stricter controls on rare-earth exports, which it says protect national interests. In response, Trump warned of steep tariffs if China does not comply with U.S. trade demands. The pact aims to address technology transfers, unfair trading practices, and the U.S. trade deficit.
Despite the tough rhetoric, U.S. Treasury Secretary Scott Bessent stressed that Washington seeks de-escalation rather than a full-blown trade war. He emphasized that the U.S. remains open to negotiations with Beijing.
The escalating exchange has already rattled markets and raised concerns about its impact on global supply chains, inflation and manufacturing sectors in both nations. Analysts say that while a trade deal is possible, the risk of stalemate and retaliation remains high.
