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21 October 2025

Trump Warns China Of 155 Percent Tariffs Amid Tense Talks

With rare earths, Taiwan, and trade on the line, President Trump threatens steep tariffs as he prepares for a high-stakes summit with Xi Jinping in South Korea.

As the world’s two largest economies edge closer to a pivotal summit, tensions between the United States and China are once again center stage. President Donald Trump, speaking from the White House on October 20, 2025, struck a bullish tone ahead of his upcoming meeting with Chinese President Xi Jinping, promising either a “fantastic deal” or the imposition of tariffs that could soar as high as 155% on Chinese goods. The stakes? Everything from the price of smartphones to the security of global supply chains—and even the delicate status of Taiwan.

“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 declared, flanked by Australian Prime Minister Anthony Albanese during a press event at the White House, as reported by Reuters. The optimism came with a warning: if a deal isn’t reached by November 1, China could face tariffs that more than double the current rate. “China’s paying 55% and a potential 155% come November 1st unless we make a deal,” Trump said, underscoring his tough negotiating stance.

Trump’s comments followed Beijing’s decision to tighten export controls on rare earth materials—minerals crucial for everything from electric vehicles and smartphones to advanced military technology. According to Bloomberg, the move has rattled markets and governments worldwide, given China’s near-monopoly on the mining and refining of these critical resources. Goldman Sachs analysts have flagged the mounting risk to global supply chains, warning that China’s dominance in rare earths and other minerals poses a challenge for countries seeking to build independent, resilient supply networks.

Days earlier, Trump had threatened an additional 100% tariff on Chinese products in direct response to Beijing’s expanded export controls on rare earths. “I don’t want them to play the rare earth game with us,” Trump told reporters aboard Air Force One as he returned to Washington from Florida on October 19, as reported by The Wall Street Journal. The message was clear: the US would not stand by as China flexed its muscle over resources vital to modern technology and defense.

Rare earths were not the only flashpoint on Trump’s list. The president identified fentanyl, soybeans, and Taiwan as top US concerns heading into negotiations with Xi Jinping. Fentanyl, a deadly synthetic opioid, has fueled a public health crisis in the US, with officials accusing Chinese suppliers of flooding American streets with the drug. Soybeans, meanwhile, have become a symbol of the broader trade war, as Chinese tariffs have hit American farmers hard in recent years.

But perhaps no issue is as sensitive—or as potentially explosive—as Taiwan. While Trump has consistently downplayed the risk of a Chinese invasion, citing the strength of the US military, he acknowledged that Taiwan would likely be on the agenda when he sits down with Xi in South Korea next week. “China doesn’t want to do that,” Trump said, referring to the possibility of an invasion. “We have the best of everything and nobody is going to mess with that ... I think we’ll end up with a very strong trade deal. Both of us will be happy.”

Still, the issue remains fraught. China views Taiwan as a breakaway province and has never ruled out the use of force to bring the island under its control. The United States, for its part, remains Taiwan’s most important international backer and arms supplier, even in the absence of formal diplomatic ties. According to Reuters, Beijing has ramped up both military and diplomatic pressure on the democratically governed island, while also pressing Washington to change its language around Taiwanese independence.

Asked whether the US might adjust its position on Taiwan to secure a trade deal, Trump was circumspect. “We’re going to be talking about a lot of things. I assume that will be one of them, but I’m not going to talk about it now,” he told reporters. Meanwhile, Taiwan’s foreign ministry sought to reassure the public, with Wang Liang-yu, head of its North American Affairs Department, stating that communication with the US is “quite smooth” and that the relationship continues to deepen. “The foreign ministry will continue to closely pay attention to relevant developments and will maintain communication with the US side to ensure Taiwan-US relations continue to deepen in a stable way and that our interests can really be guaranteed,” Wang said, as quoted by Reuters.

On the economic front, the Trump administration has leaned heavily on tariffs as a negotiating tool. Since his return to the White House, Trump has imposed an additional 30% in tariffs, bringing the total on Chinese goods to around 55–57%. He claims these measures have generated “hundreds of billions” in revenue for the US, though critics argue the costs are often borne by American importers and consumers. Trump maintains that the threat of even higher tariffs has earned the US “great respect” from Beijing, though Chinese officials have publicly rejected this approach, calling high tariffs the wrong way to handle bilateral relations.

Not everyone in Washington is convinced that trade and security issues can be neatly separated. US Trade Representative Jamieson Greer accused Beijing of “economic coercion” against firms investing in critical US industries and vowed a forceful response. “Attempts at intimidation will not stop the United States from rebuilding its shipbuilding base and responding appropriately to China’s targeting of critical industrial sectors for dominance,” Greer said in a statement, referencing recent Chinese sanctions on US-linked units of the South Korean shipbuilder Hanwha Ocean. According to officials in Seoul, these sanctions threaten to derail ambitious plans for US-South Korea shipbuilding cooperation.

In a sign of deepening ties with other Indo-Pacific partners, Trump also pledged to accelerate the delivery of nuclear submarines to Australia. This move, made during his meeting with Prime Minister Albanese, is aimed at countering China’s growing influence in the region and reinforcing a network of alliances designed to deter aggression.

As the countdown to the Trump-Xi summit in South Korea begins, the world is watching closely. The outcome of these negotiations could reshape not only US-China relations but also the broader landscape of global trade, technology, and security. The issues on the table—rare earths, fentanyl, soybeans, and Taiwan—are as complex as they are consequential. Whether the two leaders can bridge their differences and deliver the “fantastic deal” Trump envisions remains to be seen, but one thing is clear: the stakes have rarely been higher.