Trump threatens China with 155% tariffs ahead of Xi meeting in South Korea

In further escalation of the trade tension between the United States and China, President Donald Trump on Monday warned Beijing of the possibility of imposing a steep tariff of up to 155 per cent if the two countries fail to reach a trade deal.

 

Trump, however, acknowledged that China has been “very respectful” of Washington and they are already paying “tremendous amounts of money” to the US in the form of tariffs.

 

"I think China's been very respectful of us. They are paying tremendous amounts of money to us in the form of tariffs. As you know, they are paying 55 per cent; that's a lot of money," he said while talking to the media along with Australian Prime Minister Anthony Albanese.

 

Trump also expressed optimism that he will reach a “fantastic deal” with Chinese President Xi Jinping when the two leaders meet soon.

 

“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,” he said.

 

Trump is expected to meet the Chinese leader during his upcoming visit to South Korea, although no official confirmation has come from Beijing. 

 

The possible meeting is keenly watched across the world as any failure to reach some agreement between the US and China raises the risk of destabilising not only relations between the two superpowers but also the global economy.

 

"I am meeting with President Xi. We have a very good relationship; we are going to be meeting in South Korea in a couple of weeks... I think we are going to work out something which is good for both countries," the US president noted. 

 

Earlier, Trump had announced an additional 100 per cent tariff on Chinese goods "over and above any tariff that they are currently paying", effective November 1. He had also announced export controls on all critical software.

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