U.S. President Donald Trump acknowledged that his proposed 100% tariffs on Chinese goods are not sustainable in the long run, amid a sharp downturn in global markets, including cryptocurrencies. The admission came during an interview with Fox Business Network, where Trump blamed China's trade practices and recent export restrictions on rare earth materials for forcing his hand, stating, "They forced me to do that."
The tariff measures, set to take effect by November 1, just nine days before existing tariff relief expires on November 10, have escalated trade tensions. This follows a week of financial turbulence, with Trump reinstating steep import levies and imposing new export restrictions on what he described as "critical software."
Markets reacted sharply, with major U.S. stock indexes experiencing early losses that eased only after Trump confirmed an upcoming meeting with Chinese President Xi Jinping in South Korea to discuss de-escalation. Meanwhile, the cryptocurrency market saw widespread declines, with Bitcoin and Ethereum dropping significantly as investors shifted away from riskier assets amid global uncertainty.
U.S. Treasury Secretary Scott Bessent held "frank and detailed" discussions with Chinese Vice Premier He Lifeng, with plans to meet in person next week. The World Trade Organization warned that a prolonged U.S.-China decoupling could cut global growth by up to 7%, urging both nations to ease tensions. Despite the confrontational tone, Trump later softened his stance, expressing optimism about talks and stating, "China wants to talk, and we like talking to China."
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