US President Donald Trump has acknowledged that his newly proposed 100 percent tariff on Chinese goods would not be sustainable, even as he blamed Beijing for the latest breakdown in trade negotiations following China’s decision to tighten controls over rare earth exports.

In an interview with Fox Business Network broadcast on Friday, Trump said, “It’s not sustainable, but that’s what the number is,” when asked about the impact of the tariff on the US economy. “They forced me to do that,” he added, referring to Beijing’s actions.

The president announced the new levies last week, imposing a 100 percent tariff on Chinese exports to the United States and unveiling export restrictions on “any critical software” beginning November 1 — nine days before existing tariff exemptions were due to expire.

The escalation came after China expanded its export controls on rare earth elements, a group of minerals vital to global technology and defense industries. Beijing’s move further strained relations between the world’s two largest economies, already mired in disputes over trade, technology, and security.

Despite the sharp rhetoric, Trump confirmed that he would meet Chinese President Xi Jinping in South Korea in two weeks, a meeting he had previously appeared uncertain about. “I think we’re going to be fine with China, but we have to have a fair deal,” Trump said, while expressing respect for Xi.

His comments appeared to calm investor sentiment, with US stock indexes recovering modestly in early trading on Friday after a week of volatility fuelled by the tariff announcement and concerns over regional banks.