Trump signals easing stance on China tariffs ahead of Xi meeting

Investing.com -- President Donald Trump indicated Friday that the high tariffs imposed on Chinese goods will not remain in place long-term, signaling a potential shift in U.S.-China trade relations ahead of his upcoming meeting with Chinese President Xi Jinping.

"It’s not sustainable," Trump said in an interview with Fox Business when asked whether the current tariff levels could remain. "It could stand, but they forced me to do that."

Trump revealed he will meet with Xi in South Korea in two weeks, suggesting the encounter could lead to trade negotiations. "I think we’ll be fine with China," Trump stated during the interview, a clip of which aired Friday.

The president maintained his critical stance on China’s past trade practices, saying: "They’re always looking for an edge. They ripped off our country for years." He added, "China — boy, they did a number on our country. They took money out. Now, it’s reversed."

Trump emphasized his approach to dealing with Beijing: "We have a very strong adversary and they only respect strength."

The comments come after Trump threatened last week to impose additional 100% tariffs on Chinese goods starting November 1, along with other trade measures against China. These threats were in response to Chinese restrictions on rare earth mineral exports.

Financial markets showed immediate reaction to Trump’s softened rhetoric, with S&P 500 and Nasdaq futures paring earlier declines following his comments, though they remained down.

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