President Trump on Friday said threatened high tariffs on Chinese goods were “not sustainable,” easing fears of further trade escalation between the countries.
“But that’s what the number is,” he said during an interview with Fox Business. “It’s probably not [sustainable] — you know, it could stand, but they forced me to do that.”
Trump on Wednesday confirmed that trade tensions with China remain high, telling a reporter who asked whether the two countries are headed for a prolonged trade war, “Well, you’re in one now.”
The president’s comments came despite Treasury Secretary Scott Bessent suggesting that an extension of the tariff pause between the US and China was possible. Trump on Friday confirmed that he will meet with Chinese leader Xi Jinping later this month.
“I think we’re going to do fine with China,” Trump said.
Over the past week, relations between the two countries have become increasingly strained, though both sides have sent mixed signals about just how serious the fallout could be.
China accused the US on Thursday of causing “panic” over Beijing’s export controls on rare earth materials, according to a report in China’s state newspaper, the Global Times.
Last Friday, Trump said the US would impose an additional 100% tariff on Chinese goods starting on Nov. 1 over Beijing’s plan to impose new export controls on rare earth minerals.
Since then, however, China sanctioned US units of a South Korean shipping company, while Trump threatened to further curtail trade with the country in response to its halt of US soybean purchases.
Read more: What Trump’s tariffs mean for the economy and your wallet
The US budget deficit declined for the 2025 fiscal year, due in part to a surge in tariff revenues. The deficit fell 2% for the fiscal year to $1.78 trillion, down from $1.82 trillion in 2024, according to figures released by the Treasury Department.
The White House is ready to ease tariffs on the US auto industry, delivering a major win for carmakers who have lobbied to reduce the fallout from higher import duties. The Commerce Department is set to announce a five-year extension that allows automakers to reduce what they pay in tariffs on imported car parts.
Americans are set to pay more than half of President Trump’s tariffs as companies raise prices, according to Goldman Sachs.
Early next month, the US Supreme Court is set to hear a challenge to Trump’s most sweeping tariffs — the “reciprocal” country-by-country duties that you can see in the graphic above. A ruling against the tariffs — which would be in line with lower-court decisions — could have significant ramifications for Trump’s tariff strategy.
New duties on kitchen cabinets and vanities took effect Oct. 1.
Tariffs on timber and certain wood products (like furniture) took effect Oct. 14.
LIVE 47 updates
Trump says high threatened tariff levels on China are ‘not sustainable’
President Trump on Friday said threatened high tariffs on Chinese goods were “not sustainable,” easing fears of further trade escalation between the countries.
“But that’s what the number is,” he said during an interview with Fox Business. “It’s probably not [sustainable] — you know, it could stand, but they forced me to do that.”
Trump also suggested a long-planned meeting with Xi Jinping was still on track, saying he planned to meet with China’s leader in two weeks.
Watch the clip of the interview here:
Swiss minister speaks to Bessent, gives no sign of progress on tariffs
Reuters reports:
President Trump and Germany’s Merck KGaA (MRK.DE) have struck a deal to provide discounted IVF drugs to the US in exchange for tariff relief.
Bloomberg News reports:
China accuses US of undermining WTO with tariffs, sanctions
China’s Ministry of Commerce said on Friday that it will escalate actions against the US at the World Trade Organization, claiming that the United States has been undermining the WTO since President Trump took office in January.
According to Reuters, China intends to scrutinize US trade policies using the WTO review process and work with members to restore a functioning appeals process for enforcing rules. The ministry alleged that US discriminatory policies, reciprocal tariffs, and unilateral sanctions violated WTO commitments.
Tariffs have helped to trim the US deficit in the first drop seen since COVID. The US budget deficit declined for the 2025 fiscal year as tariff revenue hit a record high.
Reuters reports:
China has accused the US of causing “panic” over Beijing’s restrictions on rare earth materials. According to the Chinese state newspaper, the Global Times, Ministry of Commerce spokesperson He Yongqian said that the US is exaggerating “China’s measures” and “deliberately creating unnecessary misunderstanding and panic.”
These latest comments from China follow a week-long war of words between Washington and Beijing. It began with China restricting rare earth exports, followed by Beijing announcing it would investigate US chipmaker Qualcomm (QCOM) and placing restrictions on Nvidia (NVDA) chips. President Trump responded last week Friday and said he would put an additional 100% tariffs on China.
“The US has long exercised extraterritorial jurisdiction — it began decades ago,” she continued. “Since 2022, Washington has repeatedly imposed semiconductor export restrictions targeting China, abusing the ‘foreign direct product rule’ and zero-threshold content rules to pressure other countries into containing China,” Yongqian said.
“The accusations from the US reveal that the US is projecting its own behavior onto others. Safeguarding global supply chain security and stability requires joint efforts from all nations, including the US.”
China has indicated that they are open to talks, despite Trump confirming this week that the countries are “in” a trade war.
As part of a trade deal, the US and Canada are weighing the option of reviving a controversial oil pipeline, which could be used as a bargaining tool to ease some of the tariff tensions of President Trump’s steel and aluminum duties.
The FT reports:
President Trump’s “Liberation Day” tariffs alienated longtime allies and allowed China to build stronger relations with the world. However, since Beijing introduced export restrictions on rare earths, the tables might finally be turning in Trump’s favor.
Bloomberg News reports:
Thu, October 16, 2025 at 8:58 PM UTC Trump strikes deal with Merck on tariffs and IVF drugs
Thu, October 16, 2025 at 5:26 PM UTC Ontario premier threatens to cut off supply of potash, critical minerals amid trade war
Ontario Premier Doug Ford said on Thursday that Canada could cut off the flow of critical minerals, uranium, and potash to the United States if President Trump continues to threaten the country’s economy.
“We will not send a grain of critical minerals down there as long as we’re under constant attack by President Trump,” Ford said, as reported by Yahoo Finance Canada’s Jeff Lagerquist. “I’d love to send them down to our neighbours, but it’s not going to happen.”
Ford emphasized the US’s reliance on potash, which is used as a fertilizer, saying that US farmers would be “devastated” if Canada were to cut off the supply. He also spoke of the US’s reliance on critical minerals and uranium to build data centers for the adoption of artificial intelligence.
“They’re in desperate need of our energy,” Ford said. “Uranium gets shipped from Saskatchewan over to Port Hope in Ontario, gets refined here, and then gets enriched down in the U.S. They have 94 turbines that rely on Canadian uranium.”
Ford’s comments came after Stellantis (STLA) announced it was moving Jeep production from Ontario to Illinois, which Canada’s Prime Minister Mark Carney attributed to the tariffs the US imposed on
India’s foreign ministry said on Thursday that it is unaware of any conversation between Prime Minister Modi and President Trump around New Delhi reducing its Russian oil buys and stepping up its purchase of US crude oil and natural gas.
Bloomberg News reports:
Global CEOs, such as Apple’s (AAPL) Tim Cook are expected to meet with Chinese negotiator He Lifeng in Beijing this week, according to people familiar with the matter. The sit down comes at a time when trade tensions between the US and China are rising, with Beijing restricting exports of rare earths and President Trump threatening China with an additional 100% tariffs.
Bloomberg News reports:
President Trump said on Wednesday that India’s Prime Minister Modi has agreed to step up purchases of US crude oil and natural gas and to stop Russian oil purchases.
The AP reports:
Data from the Chicago Fed suggests that US retail sales, excluding auto sales, likely rose again in September, up 0.5%. Much of the growth is being driven by higher-income households, while middle and lower income consumers are feeling the squeeze due to rising prices and uncertainty.
Meanwhile, in its latest Beige Book report the Federal Reserve highlighted strains across businesses and households. Some have cited tariff-driven costs and policy uncertainty as the reason.
“Consumers are increasingly fatigued by high price levels and navigating an economy that feels less favorable,” said Will Auchincloss, Americas retail sector leader at EY-Parthenon. “We expect to see more intentional spending, with households prioritizing value and necessity over discretionary purchases.”
Wed, October 15, 2025 at 6:45 PM UTC Bessent slams China on rare earths but says extending pause on tariffs is possible
Yahoo Finance’s Jennifer Schonberger reports:
Wed, October 15, 2025 at 2:19 PM UTC US ships built in China exempt from new port fees
Chinese state broadcaster CCTV said that US-owned and operated cargo ships built in China would be exempt from new docking fees. The tit-for-tat dock fees took effect on Tuesday, marking a key front in the US-China trade war.
From FreightWaves:
Dollar Tree’s (DLTR) stock rose 8% before the bell on Wednesday after the retailer announced at its Investor Day that it expects earnings per share to gain as much as 10% annually over the next three years. The company said that despite higher traffic from consumers that can afford to spend more, tariffs still present a problem.
Bloomberg News reports: