The financial storm shaking global markets this week is now colliding with politics. President Donald Trump has admitted that the steep tariffs imposed on Chinese imports are “not sustainable,” just as investors worldwide brace for the fallout from one of the sharpest selloffs in months.
Speaking to Fox Business, Trump said he had been “forced” to introduce the tariffs but conceded that such high rates could not remain in place indefinitely. “It’s not sustainable,” he said, referring to levies that have reached as high as 145% on Chinese goods. “It could stand, but they forced me to do that.”
The acknowledgment comes as stock markets and cryptocurrencies face renewed turmoil. The crypto sector alone saw more than $1 billion in leveraged positions wiped out as the 100% tariffs on Chinese imports – a move that sent shockwaves through both digital assets and traditional equities – continues to cause ripples. Bitcoin plunged below $105,000, while Wall Street indices post steep intraday losses. The total crypto market cap declined to almost $3.5 trillion as bears take control, while long traders are being destroyed.
The trade war between Washington and Beijing had already been in a fragile truce, with a series of 90-day pauses giving both sides room to negotiate. The current ceasefire, however, expires November 10, and traders fear that if diplomacy fails, a new round of tariffs could spark another wave of selling.
Behind the scenes, the two governments have continued to exchange blows. The U.S. recently tightened restrictions on Chinese technology and floated new duties on Chinese shipping entering U.S. ports, while Beijing responded with fresh export controls on rare earth minerals -materials vital to semiconductor and EV manufacturing.
Trump, despite the rising tensions, struck a cautious note. He said he expects to meet Chinese President Xi Jinping later this month at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, though he briefly considered canceling the meeting. “I get along great with him,” Trump said, adding that the U.S. still seeks “a fair deal” rather than total confrontation.
Kevin Hassett, head of the National Economic Council, told Fox Business that both Trump and Treasury Secretary Scott Bessent remain optimistic about achieving a resolution that benefits both sides. “There’s still confidence we can get this back on track,” Hassett said.
Markets, however, remain unconvinced. Traders are watching whether the tariff pause will be extended or if the confrontation deepens into a full-blown economic standoff. With volatility surging, one thing seems clear – every new headline from Washington or Beijing now has the power to move markets worldwide.
Source: Bloomberg
