Torsten Slok, chief economist at Apollo Global Management, comments on President Donald Trump’s threat to increase Chinese tariffs, his outlook for the economy and more in the Barron’s Roundtable.
President Donald Trump moved to allay fears of an escalating trade war with Beijing on Sunday after he threatened to impose 100% tariffs on Chinese imports. China imports In response to restrictions on the country’s exports of rare earth minerals.
Trump’s new tariffs on China represent a significant increase compared to the current average tariffs of 55%.
In a post on Truth Social, Trump said China’s economic problems “will be okay” and insisted the US “wants to help China, not hurt China.”
“Don’t worry about China, everything will be fine!” Trump wrote. “Very respectful President Xi I had a bad moment. He doesn’t want a depression for his country, and neither do I. The United States wants to help China, not hurt it!!!
Chinese President Xi Jinping speaks during an international business meeting at the Great Hall of the People on March 28, 2025, in Beijing, China; Right: President Donald Trump speaks to reporters after signing an executive order titled “Unlocking Prosperity.” (Left: Ken Ishii-Pool/Getty Images; Right: Chip Somodevila/Getty Images/Getty Images)
The post came hours later China issued an official response In response to Trump’s threat to impose 100% tariffs on Chinese imports by November 1, he warned Washington against resorting to “threats” and pledged to “firmly take similar measures” if the United States continues to move forward.
“China’s position is consistent,” the Commerce Ministry said in a statement on Sunday.
“We don’t want a tariff war, but we’re not afraid of it.” The ministry urged the United States to address differences “through dialogue” and described repeated threats of tariffs as “not the right way to reconcile with China.”
Chinese President Xi Jinping pays tribute during the joint press conference of the China-Central Asia Summit in Xi’an, north China’s Shaanxi Province on May 19, 2023. (Florence Law/Pool/AFP via Getty Images/Getty Images)
Beijing has suggested it will respond to any new tariffs the United States may impose on Chinese imports.
On Sunday, stock exchanges indicated a shift in the trade truce between the two largest economies in the world.
Trump’s threat was initially prompted by new Chinese restrictions on the export of rare earths, or minerals that are critical to advanced manufacturing and military technology.
China controls about 70% of the world’s rare earth mining and nearly 90% of processing capacity.
Vice President J.D. Vance speaks to Fox Business’ Maria Bartiromo in an interview that will appear on “Sunday Morning Futures” tomorrow. (Fox Business/Fox Business)
Vice President J.D. Vance He also defended Trump’s position in an appearance on Fox News, where he called Beijing’s control of key supply chains “the definition of a national emergency.”
“It’s going to be a delicate dance and a lot of it will depend on how the Chinese respond. If they respond in a very aggressive way, I guarantee you the president of the United States has a lot more cards than the People’s Republic of China,” Vance told “Sunday Morning Futures.”
Trump’s threat of tariffs and China’s response also cast doubt on a meeting with Xi later this year.
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China Ministry of Commerce It said it would continue to grant export licenses for legitimate civilian uses of rare earths, but warned that “if the US side stubbornly persists in its practices,” Beijing will move to protect its interests.
Fox News Digital has reached out to the White House for comment.
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