Trump Threatens Massive Tariffs on China, Cancels Meeting with Xi Over Rare Earth Export Controls
U.S. President Donald Trump has threatened to impose massive
tariffs on China and cancel a planned meeting with Chinese President Xi Jinping in retaliation to Beijing's decision to impose export controls on rare earth minerals. Trump's comments come amid escalating tensions between the two nations, which have sent shockwaves through global markets and raised the specter of a new front in the ongoing trade war.
Background
China's latest move to tighten export controls on crucial rare earth minerals has drawn surprise and ire from the White House. According to the South China Morning Post, President Trump accused Beijing of hostile
trade behavior and warned that the move would clog markets
and disrupt global production across industries. This sentiment was echoed in Trump's posts on Truth Social, where he wrote, There is no way that China should be allowed to hold the world 'captive',
describing the move as sinister.
Key Developments
On Friday, Trump announced on Truth Social that he sees no reason
to meet with President Xi Jinping and threatened a 'massive increase' in tariffs on Chinese goods, as reported by Fox News and Clarin. This drastic shift in stance comes after previous indications from the administration suggested Trump may have been open to meeting Xi at the Asia-Pacific Economic Cooperation later this month in South Korea.
The Guardian and New York Times report that the U.S. president has reignited public tensions with the Chinese government, accusing Beijing of very hostile
moves to restrict exports of rare earths needed for American industry. Wall Street fell sharply after the announcement, indicating growing concern over another potential trade war between the world’s two largest economies.
Implications and Reactions
China's control over the rare earth minerals market has long been a contentious issue in global trade. The rare earth elements are used in a wide range of technologies, including smartphones, electric vehicles, and military equipment. RT (Russia Today) and The Hindu add that Beijing's restrictions are intended to protect national security and meet international obligations, including those related to non-proliferation.
The decision to impose export controls has sparked fears of a supply crunch and higher prices for these vital components. As Folha de S.Paulo reports, companies and individuals, particularly foreign ones, will have to apply for permission to trade in rare earths and products containing Chinese rare earths.
Trump's threats of hefty tariffs and meeting cancellation have been met with retaliatory measures from China. South China Morning Post reports that China will levy phased fees on US-linked vessels calling at its ports starting next week, a move seen as a 'tit-for-tat response'.
Current Status
As the situation stands, the escalating tensions between the U.S. and China over rare earth export controls have deepened the uncertainty surrounding global trade. Both nations have unleashed a series of economic sanctions and export control measures, sparking fears of a protracted and damaging trade war. Meanwhile, global markets are bracing for the potential fallout of these escalating trade tensions.