Trump threatens to impose a 155% tariff on Chinese imports starting November 1 if no trade deal is reached
Despite the tough stance, Trump expresses a desire to maintain good relations with Chinese President Xi Jinping
The US-China trade conflict intensifies as China tightens rare earth magnet exports and the US pressures both China and India over Russian oil imports.
Diplomatic differences between Trump’s informal negotiating style and Xi’s procedural approach present significant challenges to reaching a trade agreement.
Trump Warns 155% Tariff on China If No Trade Deal by Nov 1
Trump’s announcement comes against the backdrop of an intensifying trade war, as China proceeds to tighten its rare earth magnet exports, triggering global supply chain concerns
Summary
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US President Donald Trump on Tuesday said that Washington will continue with its plan to impose a sweeping 155% tariff on China starting November 1, if Beijing and Washington do not reach a deal by then.
"Right now, as of November 1st, China will have about 155 per cent tariffs put on it. I don't think it's sustainable for them,” Trump said, stating that the tariffs are being imposed in response to China’s import of Russian oil — which the West has been consistently trying to slash in order to bring a ceasefire to the ongoing Russia-Ukraine war.
However, Trump highlighted that he wishes to maintain a good relationship with his Chinese counterpart Xi Jinping, who is likely to meet Trump later this month in South Korea.
"I want to be nice to China. But China has been very rough with us over the years because we had presidents that weren't smart from a business standpoint,” Trump said. “They allowed China and every other country to take advantage of us.”
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Tariff Threat Escalates US-China Trade War
Trump’s announcement comes against the backdrop of an intensifying trade war, as China proceeds to tighten its rare earth magnet exports, triggering global supply chain concerns. Moreover, the US has also targeted India for its oil purchases from Russia and is now pressuring China to reduce or cease its oil imports from Moscow. Beijing remains the world’s largest importer of Russian crude.
Hours after Trump made remarks about the additional tariffs, China announced the removal of its top trade negotiator, Li Chenggang, as the permanent representative at the World Trade Organization (WTO). According to Reuters, the WTO confirmed that Li Yongjie has replaced Chenggang.
Diplomatic Divide Between Trump and Xi
According to a report by The Economist, one of the key challenges to a US-China trade deal is the contrasting diplomatic styles of the two countries' top leaders, especially in economic diplomacy. Trump largely relies on his “magnetism and negotiating skills,” the report said, quoting Chris Johnson, a former CIA China analyst. In contrast, Xi believes in procedure and is unlikely to agree to anything without a clear agenda, Johnson added.
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