Trump prepares for Xi meeting in South Korea, says 100% tariff unsustainable

U.S. President Donald Trump admitted on Friday that his 100% tariff on Chinese goods cannot hold forever, but insisted Beijing left him no choice.

Speaking on Fox Business Network, Trump said, “It’s not sustainable, but that’s what the number is. They forced me to do that.” The comment came as Washington and Beijing remain stuck in another round of tense trade talks, this time triggered by China’s tightening control over rare earth exports, a move that hit straight at the core of American tech manufacturing.

The announcement followed Trump’s rollout of additional 100% levies on China’s U.S.-bound exports a week earlier, coupled with new export controls on critical software set to take effect by November 1, nine days before current tariff relief expires.

Trump said the action was necessary to protect American industries from Chinese dominance in rare earth elements. These minerals, mostly processed in China, are key to products like smartphones, chips, and defense systems.

Trump prepares for Xi meeting in South Korea

Trump also confirmed he will meet Chinese President Xi Jinping in South Korea in two weeks, a meeting he previously doubted would happen. “I think we’re going to be fine with China,” Trump said. “But we have to have a fair deal. It’s got to be fair.” The remark was seen as an attempt to strike a diplomatic balance before the summit.

Meanwhile, Treasury Secretary Scott Bessent is set to speak by phone with Chinese Vice Premier He Lifeng to keep trade discussions alive. A senior White House official reportedly told CNBC that the conversation would focus on “ongoing negotiations” between the two nations, though the timing and next steps were not immediately revealed.

Officials described the call as part of a continued effort to stabilize relations before Trump’s face-to-face meeting with Xi.

The White House’s latest trade measures mark another escalation following Beijing’s export curbs, which tightened the flow of rare earths crucial to U.S. technology manufacturing. These curbs sparked renewed debate over supply chains that remain heavily dependent on Chinese processing capacity. Trump’s 100% tariff announcement, though intended as leverage, has raised fears about rising production costs and potential inflation impacts inside the U.S.

Public sentiment turns against Trump’s tariff policies

Back home, American public opinion is shifting. The CNBC All-America Economic Survey shows growing pessimism about the economy in the third quarter, with more people worried about jobs, inflation, and cost of living.

The same survey revealed Trump’s economic approval rating slid to 42% approval and 55% disapproval, giving him a -13 net rating, the lowest of any CNBC poll during his presidency.

Trump’s overall approval also fell to 44%, down from 46%, while disapproval ticked up to 52%. The results continue a trend in his second term where his economic ratings now trail his overall approval, the opposite of what was seen during his first term when strong economic growth bolstered his numbers.

The survey of 1,000 respondents nationwide, with a margin of error of ±3.1%, found 53% of Americans blaming Trump and Republicans in Congress for potential fallout from the ongoing government shutdown, while 37% blamed Democrats.

The data also show dissatisfaction with key policies: only 34% approve of his handling of inflation and cost of living, while 62% disapprove — the worst of any CNBC survey during his second term. And on tariffs, 56% of respondents disapprove compared to 41% who approve, resulting in a net approval of -15, down from -6 last quarter.

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