Trump calls 100 percent China tariffs 'not sustainable' following market panic
Trump insists the tariffs are 'still necessary' and hopes a 'fair deal' can be reached in his upcoming meeting with President Xi
US President Donald Trump stated on 17 October that his proposed 100 percent tariff increase on imports from China would "not be sustainable" but was a necessary response to Beijing's recent restrictions on rare earth exports.
When asked what effect imposing such a high tariff would have on the US economy, which relies on cheap Chinese imports, Trump replied, "It's not sustainable, but that's what the number is."
"They forced me to do that," he said in an interview with Fox News.
After Trump announced the move on 10 October, US stocks crashed, erasing $1.5 trillion in value.
The Nasdaq fell 3.56 percent, and the S&P 500 lost 2.71 percent. The cryptocurrency market saw $19 billion in liquidations, the largest single-day figure ever recorded.
Trump's 100 percent tariff increase on Chinese exports is set to take effect on 1 November. Trump also announced new export controls on "any and all critical software," which will go into effect the same day.
China dramatically expanded its rare earth element export controls on 9 October. Beijing dominates the market for such elements, which are essential to tech manufacturing.
Rare earths are needed for everything from providing color for smartphone screens, relaying signals through fiber-optic cables, building strong and reliable magnets, generating sound waves in headphones, and for components for quantum computers.
Trump expressed optimism that a deal can be reached when he meets with Chinese President Xi Jinping in two weeks in South Korea.
"I think we're going to be fine with China, but we have to have a fair deal. It's got to be fair," Trump said to Fox News.
"They're always looking for an edge. They ripped off our country for years," the US President added.
Also on Friday, China's Ministry of Commerce released its report on US compliance with World Trade Organization (WTO) regulations.
Xinhua reported that according to the report, "the US has escalated its unilateral actions and frequently implemented discriminatory policies -- particularly in its introduction of so-called reciprocal tariffs and in waging global trade wars -- which have infringed upon the legitimate rights and interests of other countries."