Trump said he expects a “fantastic trade deal” with China by the end of the month despite the ongoing tariff war

Donald Trump, speaking from the White House on Monday, said a “fantastic trade deal” with China is coming soon.

The U.S. president told reporters that negotiations were heading in the right direction and that he expected a full agreement to be reached by the end of the month. This comes as both countries remain locked in a messy standoff over tariffs and rare-earth minerals, with threats flying from both sides.

“I think we’re going to end up having a fantastic trade deal with China,” Trump said, according to a report from Washington.

Trump’s comments also followed a high-level meeting with Australia’s Prime Minister Anthony Albanese, where the two leaders jointly announced a $1 billion deal to process rare-earth materials. These minerals are key to both military tech and everyday electronics, and the U.S. is now working with Australia to secure supplies outside China’s control.

Trump threatens 157% tariffs if no deal by November 1

On October 9, China placed new export restrictions on rare earths. That move was seen as retaliation, and Trump didn’t waste time firing back. If a deal isn’t reached by November 1, the U.S. will slam Chinese goods with tariffs as high as 157%, he warned.

This isn’t just about minerals.

China also hit back with tariffs targeting U.S. farmers, nearly wiping out American soybean exports to China, once the top buyer of U.S. crops. Trump acknowledged the pain: “They stopped buying our soybeans because they thought that was punishment,” he said. “It is punishment to our farmers, but we’re not going to allow that to happen.”

Still, Trump claimed China was treating the United States with “great respect” and insisted the relationship could be salvaged. He said both sides were under pressure, but he believed President Xi Jinping would meet him in person during Trump’s Asia trip, set for October 31 and November 1 in South Korea. “They threatened us with rare earths, and I threatened them with tariffs,” he added.

Trump dismisses Taiwan invasion fears ahead of Xi meeting

When asked about Beijing’s growing aggression toward Taiwan, Trump brushed it off. “I think we’ll be just fine with China. China doesn’t want to do that,” he said. Referring to Taiwan, he added, “That doesn’t mean it’s not the apple of his eye, because probably it is, but I don’t see anything happening.”

Tensions have been rising. Military analysts say China could invade Taiwan by 2027, pointing to increased air and naval activity in the Taiwan Strait, South China Sea, and East China Sea. But Trump said he wasn’t worried.

“The United States is the strongest military power in the world by far. It’s not even close,” he said. “We have the best equipment. We have the best of everything, and nobody’s going to mess with that. And I don’t see that at all with President Xi. I think we’re going to get along very well.”

This was only the second time Trump publicly commented on Taiwan since returning to office in January. The first came in August, when he told Fox News’ Brett Baier that Xi had personally promised him China wouldn’t invade while Trump was president. “President Xi told me that, and I said, ‘Well, I appreciate that,’ but he also said, ‘But I am very patient, and China is very patient.’”

When pressed on whether Taiwan’s independence would be used as a bargaining chip in his upcoming trade talks with Xi, Trump didn’t answer. He left that door open. But everything else, from tariffs to soybeans to rare earths, is clearly on the table.

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