Washington D.C.: US President Donald Trump on Monday signalled optimism ahead of his upcoming meeting with China’s President Xi Jinping, suggesting that both nations were on track to strike a “fantastic deal” while warning that failure to reach an agreement could result in tariffs as high as 155% on Chinese goods.
Trump made the comments while hosting Australian Prime Minister Anthony Albanese at the White House, emphasising that the potential trade deal would be beneficial not only for the United States and China but for the global economy as a whole.
“I think we’re going to end up having a fantastic deal with China. It’s going to be a great trade deal. It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world,” Trump said.
Tariffs as leverage
The US President warned that China faces a potential tariff increase from the current 55% to 155% starting November 1 if a deal is not reached. “China’s been very respectful of us. They are paying tremendous amounts of money to us in the form of tariffs. As you know, they are paying 55%, that’s a lot of money…A lot of countries took advantage of the US and they are not able to take advantage anymore,” he said.
Trump highlighted that since returning to the White House, he has imposed additional 30% tariffs on Chinese imports, taking the total tariff rate to roughly 55–57%, which he claims has generated “hundreds of billions” in revenue for the US.
Export controls and trade tensions
Trump’s remarks come after Beijing tightened export controls on rare earth materials, which are crucial for smartphones, fighter jets, electric vehicles, and other advanced technologies. In response, Trump has indicated that the US may impose new tariffs up to 100% on Chinese goods affected by these controls.
Chinese officials have rejected the US tariff approach, describing it as the wrong way to manage bilateral relations. Despite the tensions, Trump stressed his preference for reaching a deal, citing a good working relationship with President Xi.
Broader geopolitical context
Trump also addressed concerns regarding potential Chinese aggression towards Taiwan, asserting that the US military’s superiority makes such an attack unlikely. He said the upcoming meeting with Xi, scheduled to take place in South Korea in the coming weeks, aims to work out an agreement that is mutually beneficial.
Trump concluded, “I think we’re going to work out something which is good for both the countries,” signalling that while the US remains firm on trade leverage, it remains open to negotiations that could stabilise the bilateral relationship.
Conclusion
The upcoming Trump-Xi meeting is being closely watched globally, with high stakes for international trade and technology supply chains. While the threat of steep tariffs underscores US resolve in negotiations, both leaders appear motivated to reach a compromise that could avert further escalation and foster economic stability.