The president of United States, Donald Trumpacknowledged that his decision to apply 100% tariffs on products from China could not be maintained over time, although justified the measure pointing out that it was a obligatory response in the face of the actions of the government of Beijing.
In an interview with Fox Business Network, broadcast on Friday, the president stated: “It’s not sustainable, but that’s the number. They forced me to do it”, alluding to the deterioration of trade negotiations between both powers.
China is currently the world’s leading producer of these resources, and his decision to restrict them provoked a strong reaction in Washington.
In response, Trump announced a 100% increase in tariffs on Chinese importsalong with new export controls of “any and all critical computer programs” from November 1just nine days before the current tariff pause expired.
The measures, as explained by the White House, aimed to protect the American technology industry already put pressure on Beijing so that it reduces its control over the global supply chain.
Expectations regarding a possible meeting between Donald Trump and Xi Jinping
In the same television dialogue, Trump confirmed that he plans meet with Chinese President Xi Jinpingin two weeks South Koreaafter having questioned that meeting during the previous week.
The Republican leader expressed his desire to resume bilateral dialogue and praised the Asian leader. “I think we are going to be fine with China, but we have to have a fair agreement. It has to be fair“, he noted during the program “Mornings with Maria”recorded on Thursday.
The meeting between both leaders will be key to defining the course of the trade relationship between the two largest economies in the worldin the midst of a context of growing tension and with the direct impact of the new 100% tariffs on international trade.
The tariff conflict
Economic analysts warned that the tariff war between the United States and China could escalate if an understanding is not reached in the coming weeks. Although Trump admitted that the measure “is not sustainable,” his statements reflect the intention of keep pressure on Beijing to obtain a favorable agreement.
Meanwhile, the restrictions imposed on rare earth and the strategic software threaten to disrupt global supply chains and generate higher costs for technology companies.
The meeting in South Korea is emerging as a decisive opportunity for redirect business relationshipsalthough mutual distrust and competition for global technological leadership continue to mark the agenda of both countries.
Source: Ambito
