'Will Impose 155% Tariff Until Deal Done,'Trump Warns China Amid Trade Talks

Trump again warns China on tariffs: Tension is increasing in the US-China trade war. On Monday, US President Donald Trump issued a stern warning to China, saying that if a "fair trade deal" is not made with Chinese President Xi Jinping, tariffs of up to 155% will be imposed on Chinese goods from November 1. This statement was given before the signing of the Critical Minerals Agreement with Australian Prime Minister Anthony Albanese at the White House.

Trump's ultimatum amid Australia deal

Ahead of bilateral talks with the Australian PM, Trump said, "I think China respects us very much. They are giving us a huge amount in the form of tariffs—a 55% tariff right now, which is a huge amount. But from November 1, it could go up to 155% unless we make a deal." The agreement focuses on joint mining and supply chain diversification with Australia to reduce America's dependence on China.

Last month Trump announced additional 100% tariffs on Chinese imports in response to China's export controls on rare earth minerals, bringing the effective rate to 155-157%. "They have always tried to take advantage and have exploited our country for years," Trump said. However, he struck an optimistic tone and said it would be exciting to meet Xi at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

Trump said, "I hope that China and I will make a wonderful fair trade deal. It will be great for both countries and the world." But he warned that if progress was not made, the summit could be cancelled.

Trump's claims on trade agreements

Referring to recent US trade successes, Trump said the US has made deals with many countries that previously "took advantage of America." He claimed that these agreements are bringing in billions of dollars of tariff revenues. US Treasury Secretary Scott Besant confirmed that working-level talks with China were taking place in Malaysia this week.

China's Commerce Ministry said in response that it would "fight to the end" against American "threats," but exempted some Chinese-built ships from countermeasures.

Market impact and global impact

Trump's statement sent shockwaves through the markets: The Dow Jones closed up 0.8% after an initial decline in the US stock market. Experts believe that industries ranging from electronics to aviation may be affected. Capital Economics warned that the tariffs could lead to further restrictions on the aviation supply chain.

Trump softened his stance in an interview with Fox News, saying, "I'm not saying this with the intention of destroying China," and described Xi's life as a "movie." But the path to a deal is difficult due to tariffs already imposed on goods like lumber and furniture. As Trump said, “It will be exciting”—but uncertainty remains a concern for global markets.