President Donald Trump acknowledged that the steep tariffs he recently threatened against China are "not sustainable", signalling potential flexibility in the ongoing trade standoff between the world's two largest economies as a crucial summit looms. In a Fox Business interview aired on October 17, 2025, Trump reflected on his prior warning of an additional 100% levy on Chinese goods by November 1, admitting the measure's economic toll while insisting it was a response to Beijing's actions. This softening comes ahead of an anticipated bilateral meeting with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month, a venue critical for de-escalating frictions that have rippled through global supply chains.
The U.S.-China trade war, reignited under Trump's second term, has seen import duties on Chinese products climb as high as 145% in retaliatory cycles, stoking fears of a worldwide recession and severed bilateral commerce valued at over $500 billion annually. These escalations prompted a series of 90-day truce agreements to facilitate negotiations, with the latest pause—allowing time to address intellectual property theft, forced technology transfers, and market access—due to expire on November 10 unless renewed.
Recent setbacks have compounded the impasse: Washington has broadened export curbs on sensitive technologies and floated duties on Chinese vessels docking at U.S. ports, prompting Beijing to impose stricter controls on rare-earth minerals essential for electronics and renewables. Trump's threat last week to impose the 100% hike and possibly scrap the Xi summit underscored the brinkmanship, yet his latest remarks suggest a pragmatic pivot, emphasising personal rapport with Xi: "I get along great with him."
Trump's comments, delivered amid domestic pressures from U.S. manufacturers facing higher input costs—estimated at $100 billion yearly by the U.S. Chamber of Commerce—highlight the tariffs' double-edged impact. While intended to protect American jobs and reduce the $300 billion trade deficit, the levies have inflated consumer prices and disrupted industries from agriculture to automotive, with soybean farmers alone losing $12 billion since 2018.
"It’s not sustainable... but they forced me to do that," Trump stated, framing the policy as defensive. This echoes broader critiques from economists, including Nobel laureate Paul Krugman, who warn that prolonged hostilities could shave 0.5% off global GDP annually, per International Monetary Fund projections. Nonetheless, Trump reiterated his bottom line: "I think we’re going to be fine with China, but we have to have a fair deal. It’s got to be fair."
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National Economic Council Director Kevin Hassett offered optimism on the same broadcast, voicing "high confidence" that Trump and Treasury Secretary Scott Bessent could forge a mutually beneficial resolution with Chinese counterparts. As the November deadline approaches, stakeholders from Wall Street to the World Trade Organization monitor closely, with Asian markets dipping 1.2% on tariff jitters this week.
The APEC meeting, hosted in Busan, represents a diplomatic lifeline; a breakthrough could stabilise currencies and boost investor sentiment, while failure risks further decoupling. Trump's reversal underscores the high-stakes calculus of economic nationalism versus interdependence, potentially influencing midterm congressional dynamics and setting precedents for U.S. trade pacts with allies like the EU and India.
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