Trump Optimistic About Trade Deal with China

US President Donald Trump expressed optimism about an upcoming trade agreement with China, stating that both nations could achieve a "fantastic deal." Speaking at the White House while hosting Australian Prime Minister Anthony Albanese, Trump warned that failure to reach an agreement could lead to tariffs on China as high as 155%.

"I think we’re going to end up having a fantastic deal with China. It’s going to be a great trade deal. It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world," Trump said. He noted that China has been respectful and is currently paying significant tariffs, which he estimates at 55%.

Trump mentioned that unless a deal is struck, tariffs could increase dramatically by November 1st. He is scheduled to meet with Chinese President Xi Jinping in South Korea in the coming weeks, emphasizing their good relationship.

The President's comments come after China tightened export controls on rare earth materials, which are crucial for various technologies, including smartphones and electric vehicles. In response, Trump has threatened to impose a new 100% tariff on these products. Since taking office, he has already implemented additional tariffs, raising the total on Chinese goods to approximately 55-57%, which he claims has generated substantial revenue for the US.

Despite his tough trade stance, Trump prefers a negotiated settlement, asserting that the threat of tariffs has earned the US respect from China. However, Chinese officials have criticized high tariffs as an ineffective strategy. Additionally, Trump downplayed fears of a potential Chinese military action against Taiwan, citing the US military's superiority as a deterrent.