Trump warns of 155% tariffs on China if trade deal not finalised by Nov 1

Trump warned of potential steep tariffs on Chinese goods if a trade deal isn't reached after his meeting with Xi Jinping later this month. However, he expressed his optimism for a 'fair' agreement

US President Donald Trump on Monday (local time) issued a stern warning to China, saying he could impose tariffs of up to 155 per cent on Chinese goods from November 1 if the two countries fail to reach a trade agreement.

 

Speaking at the White House during a meeting with Australian Prime Minister Anthony Albanese, Trump said Beijing had been “very respectful” and was already paying “tremendous amounts of money” under existing tariffs.

 

“A lot of countries took advantage of the US, and they are not able to take advantage anymore. China’s paying 55 per cent and a potential 155 per cent come November 1 unless we make a deal,” Trump said.

Trump confident of reaching ‘fair and great’ deal

Despite the tough rhetoric, Trump expressed confidence in securing a mutually beneficial trade agreement with Chinese President Xi Jinping.

 

He revealed plans to meet Xi in South Korea later this month during the Asia Pacific Economic Cooperation (APEC) summit, describing the discussions as vital for maintaining a strong US-China relationship.

 

“I think when we finish our meetings in South Korea, China and I will have a really fair and really great trade deal together. I want them to buy soybeans… It’s going to be fantastic for both countries and for the entire world,” he said.

 

Trump also confirmed he had been invited to visit China early next year.

US-China trade tensions intensify

Trump’s latest comments come amid heightened trade tensions between Washington and Beijing. Since returning to office, he has imposed tariffs totalling around 55 per cent on Chinese goods, generating billions in revenue for the US.

 

Earlier this month, Trump announced an additional 100 per cent tariff on top of existing duties, along with export controls on critical software, effective November 1. The move followed Beijing’s decision to impose export controls on rare earth materials vital to high-tech and defence industries. 

 

“These export controls affect virtually every product China makes and some products they don’t. This is unheard of in international trade,” Trump wrote in a Truth Social post.

Beijing hits back, calls US approach ‘improper’

Responding to Trump’s comments, Chinese foreign ministry spokesperson Lin Jian said threatening tariffs was “not the proper way to engage with China.”

 

China, meanwhile, has tightened export controls on rare earths and other materials used in electronics and renewable energy, citing national security concerns. The restrictions are expected to intensify pressure on global supply chains.

Shake-up in China’s trade leadership

The warning from Trump coincides with Beijing replacing its top trade negotiator. Li Chenggang has been replaced by Li Yongjie, a deputy international trade representative, following public criticism from US Treasury Secretary Scott Bessent over Li’s handling of earlier negotiations.

 

A recent video conference between Chinese Vice Premier He Lifeng, Bessent, and US Trade Representative Jamieson Greer reportedly led to a constructive exchange. Both sides agreed to hold another round of trade talks—potentially in Malaysia—ahead of the Xi-Trump summit.

Tariffs as leverage

Trump insisted tariffs remain his primary tool of leverage against what he called China’s “aggressive” economic actions. He said Beijing’s threat to limit exports of rare earth materials had prompted the new tariff warning.

 

“They threatened us with rare earths, and I threatened them with tariffs. But I want to be good to China. I love my relationship with President Xi,” Trump said.

 

The US President added that a deal with Beijing could still be reached before the November deadline, framing his strategy as a balance of pressure and diplomacy. 

(With inputs from agencies)