Trump Calls 100% China Tariffs Unsustainable, Confirms Xi Meeting

President Donald Trump stated his proposed 100% tariff on Chinese goods is not sustainable. He confirmed plans to meet with Chinese President Xi Jinping in the coming weeks. The comments come amid a significant escalation in trade tensions.

The new tariffs were a reaction to China expanding its export controls on rare earth elements. Trump blamed Chinese authorities for the latest impasse in trade negotiations.

Trade Tensions Rattle Global Markets

The announcement of drastic new levies sent shockwaves through financial markets. Wall Street experienced notable volatility as investors weighed the potential impact. According to Reuters, major stock indexes fluctuated with the news.

The situation was partly calmed by Trump’s softened tone and affirmation of the planned meeting. U.S. Treasury Secretary Scott Bessent stated he believed things had de-escalated. He expressed confidence that talks would get back on a good course.

WTO Warns of Severe Economic Damage

The World Trade Organization has urged both nations to de-escalate. WTO Director-General Ngozi Okonjo-Iweala warned a full decoupling of the two economies could be devastating. She indicated it could reduce global economic output by 7% over the long term.

Despite the planned high-level meeting, underlying tensions remain high. The U.S. continues to criticize China’s state-driven economic practices. China’s Commerce Ministry has accused the U.S. of undermining the multilateral trading system.

The path forward hinges on the upcoming meeting between the two leaders. The outcome will be critical for global economic stability. The world is watching to see if a new trade war can be averted.

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What are the proposed new tariffs?

President Trump has proposed a 100% tariff on all goods imported from China. This would be a significant increase from previous tariff levels. The measure is a direct response to Chinese export controls.

When will Trump and Xi meet?

The two leaders are scheduled to meet in two weeks in South Korea. This confirmation helped soothe nervous financial markets. The meeting is seen as crucial for de-escalation.

What did the WTO say about the dispute?

The WTO head warned that a decoupling of the U.S. and Chinese economies could cut global GDP by 7%. The organization is urging both sides to return to dialogue. The warning highlights the high stakes for the world economy.

How have markets reacted to the news?

Financial markets have experienced heightened volatility. Stocks fell on the initial tariff announcement but recovered somewhat after the meeting was confirmed. Investors remain sensitive to any trade war developments.

What is the core issue behind the trade dispute?

The U.S. criticizes China’s state-driven economic model and industrial policies. Washington argues these practices create unfair global competition. Beijing denies these allegations and defends its economic system.