President Trump’s comment that 100% tariffs on China would not be sustainable lifts US stock indices and pushes gold price lower

U.S. President Donald Trump unsettled financial markets on Friday after acknowledging that a proposed 100% tariff on Chinese goods would be unsustainable. However, he placed the blame for the latest breakdown in trade negotiations on Beijing, following China’s decision to tighten restrictions on rare earth exports.

Just a week earlier, Trump had announced plans to impose 100% tariffs on all Chinese exports to the United States, alongside new export controls on critical software set to take effect by November 1 — nine days before the current tariff relief was due to expire.

These measures were in response to China’s move to dramatically expand export controls on rare earth elements, a market it dominates and which is vital to global technology manufacturing.

Trump also confirmed that he would meet Chinese President Xi Jinping in two weeks in South Korea — a meeting he had previously cast doubt on — and expressed personal admiration for the Chinese leader.

The shift in tone and confirmation of the upcoming meeting helped ease investor concerns. Wall Street recouped part of its earlier losses, with major U.S. stock indexes rising modestly in early trading on Friday, while gold prices retreated from record highs in immediate reaction to Trump’s remarks.