Trump threatens 155% tariffs on China if trade deal isn’t done by Nov 1
US President Donald Trump on Monday issued a stern warning to China, stating he could impose tariffs of up to 155 per cent on Chinese goods from November 1 if the two countries fail to reach a trade agreement. During a meeting at the White House with Australian Prime Minister Anthony Albanese, Trump remarked that Beijing had been “very respectful” and was already paying “tremendous amounts of money” under existing tariffs. “A lot of countries took advantage of the US, and they are not able to take advantage anymore.” Trump stated that “China’s paying 55 per cent and a potential 155 per cent come November 1 unless we make a deal.” Amidst the strong language, Trump conveyed optimism about reaching a trade agreement that would benefit both parties with Chinese President Xi Jinping. He disclosed intentions to meet Xi in South Korea later this month at the Asia Pacific Economic Cooperation summit, characterizing the discussions as crucial for sustaining a robust US-China relationship. “I think when we finish our meetings in South Korea, China and I will have a really fair and really great trade deal together.” I want them to purchase soybeans… “It’s going to be fantastic for both countries and for the entire world,” he said.
Trump’s recent remarks arise in the context of escalating trade tensions between Washington and Beijing. Since returning to office, he has imposed tariffs totaling approximately 55 percent on Chinese goods, generating billions in revenue for the US. Earlier this month, Trump announced an additional 100 percent tariff on top of existing duties, along with export controls on critical software, effective November 1. The action came after Beijing decided to implement export controls on rare earth materials essential for high-tech and defense industries. “These export controls impact nearly every product manufactured in China, as well as some that are not.” “This is unheard of in international trade,” Trump wrote.
In response to Trump’s remarks, Chinese foreign ministry spokesperson Lin Jian stated that threatening tariffs was “not the proper way to engage with China.” China has implemented stricter export controls on rare earths and other materials essential for electronics and renewable energy, citing national security concerns. The restrictions are anticipated to heighten pressure on global supply chains. The warning from Trump comes at the same time that Beijing is replacing its top trade negotiator. Li Chenggang has been succeeded by Li Yongjie, a deputy international trade representative, after facing public criticism from US Treasury Secretary Scott Bessent regarding Li’s management of previous negotiations.
A recent video conference involving Chinese Vice Premier He Lifeng, Bessent, and US Trade Representative Jamieson Greer reportedly resulted in a constructive exchange. Both parties have consented to convene for an additional round of trade discussions—possibly in Malaysia—prior to the Xi-Trump summit. Trump maintained that tariffs are his main instrument of leverage against what he described as China’s “aggressive” economic actions. He stated that Beijing’s threat to restrict exports of rare earth materials had led to the new tariff warning. “They threatened us with rare earths, and I threatened them with tariffs.” However, I wish to foster goodwill towards China. “I love my relationship with President Xi,” Trump said. The US President stated that a deal with Beijing could still be achieved before the November deadline, presenting his approach as a blend of pressure and diplomacy.
