U.S. President Donald Trump has warned that tariffs on Chinese goods could rise sharply, up to 155%, if China does not agree to what he calls a "fair trade deal" by November 1. This warning has once again increased tensions between the United States and China, two of the world’s largest economies.

Trump made these comments during a meeting with Australian Prime Minister Anthony Albanese at the White House. The two leaders signed a new agreement to work together on critical minerals, which are important for technology and national security. This agreement is part of the U.S. effort to reduce its reliance on China for key materials.

Trump said that China is already paying high tariffs, about 55%, on goods sold to the U.S., and the amount could nearly triple if a deal is not made soon. “China’s paying us a tremendous amount of money in tariffs,” Trump said. “But they have to give us something in return. It’s no longer a one-way street.”

He added that while he respects President Xi Jinping and has a good relationship with him, the U.S. will no longer accept unfair trade practices. Trump believes a better trade agreement with China is still possible and said their upcoming meeting in South Korea could help achieve that.

At the same time, tensions are already affecting trade. China didn’t buy any U.S. soybeans in September, something that hasn’t happened since 2018. Instead, Chinese companies bought soybeans from South America.

Trump also announced that new restrictions on exporting important U.S. so ftware to China may start on November 1. These would be added on top of the current tariffs. Meanwhile, U.S. Treasury Secretary Scott Bessent confirmed that U.S. and Chinese officials will hold trade talks in Malaysia this week.

Trump said he hopes the talks and his meeting with Xi will lead to a fair and strong deal that benefits both countries and the global economy.