'I think we're going to be fine with China': Trump confirms meeting with Xi

US President Donald Trump said his proposed 100% tariff on goods from China would not be sustainable, but blamed Beijing for the latest impasse in trade talks that began with Chinese authorities tightening control over rare-earth exports.

Asked whether such a high tariff was sustainable and what that might do to the US economy, Trump replied: "It's not sustainable, but that's what the number is."

"They forced me to do that," he said in an interview with Fox Business Network that was broadcast on Friday.

Trump unveiled additional levies of 100% on imports of Chinese goods a week ago, along with new export controls on "any and all critical software" by November 1, nine days before existing tariff relief was set to expire.

The new trade actions were Trump's reaction to China's dramatic expansion of its export controls on rare earth elements. China dominates the market for such elements, which are essential to tech manufacturing.

Trump also confirmed he would meet with Chinese President Xi Jinping in two weeks in South Korea and expressed admiration for the Chinese leader.

"I think we're going to be fine with China, but we have to have a fair deal. It's got to be fair," Trump said on FBN's "Mornings with Maria," which was taped on Thursday.

Later, as he was preparing to have lunch at the White House with Ukrainian President Volodymyr Zelenskiy to discuss efforts to end its war with Russia, Trump said: "China wants to talk, and we like talking to China."

The softening in tone and affirmation of his intent to meet with Xi helped stem Wall Street's early losses on Friday. Major US stock indexes, which have been rattled over the last week by Trump's abrupt re-imposition of steep levies on Chinese imports and by credit worries among regional banks, were up in afternoon trading.

US Treasury Secretary Scott Bessent spoke with his counterpart, Chinese Vice Premier He Lifeng, on Friday evening in what he called "frank and detailed discussions" about trade, and said the two will meet in person next week.

WTO warns global output could fall by 7%

The head of the World Trade Organisation said she urged the US and China to de-escalate trade tensions, warning that a decoupling by the world's two largest economies could reduce global economic output by 7% over the longer term.

WTO Director-General Ngozi Okonjo-Iweala told Reuters in an interview the global trade body was extremely concerned about the latest spike in US-China trade tensions and had spoken with officials from both countries to encourage more dialogue.

But tensions continued to run high, even as Trump and Xi prepared to meet.

Bessent took aim at China's state-driven economic practices in a statement to the IMF's steering committee on Friday, urging the IMF and World Bank to take a tougher stance on China's external and internal balances and industrial policies that US officials say have helped China build up excess manufacturing capacity that is flooding the world with cheap goods.

And China's Commerce Ministry on Friday accused the US of undermining the rules-based multilateral trading system since the Trump administration took office in 2025, vowing to intensify its use of dispute settlement actions at the WTO.

It also urged the US to roll back measures that breach non-discrimination rules and align its industrial and security policies with WTO obligations.

Bessent earlier in the week had accused one of He's top aides of being "unhinged" in recent interactions with US trade negotiators. China said on Friday that Bessent's remarks "seriously distort the facts."