President Donald Trump on Friday threatened to place an additional 100% tax on Chinese imports starting on Nov. 1 or sooner, potentially escalating tariff rates close to levels that in April fanned fears of a global recession.
The president expressed frustration with new export controls placed on rare earth elements by China — and said on social media that “there seems to be no reason” to meet with Chinese leader Xi Jinping as part of an upcoming trip to South Korea.
Trump later told reporters he had not canceled his meeting. “But I don’t know that we’re going to have it,” he said during an Oval Office appearance on another subject. “I’m going to be there regardless, so I would assume we might have it.”
Trump also suggested there may be time to ratchet down his steep new tariff threat. “We’re going to have to see what happens. That’s why I made it Nov. 1,” he said.
China’s new restrictions
Last week, the Chinese government restricted access to rare earth minerals, requiring foreign companies to get special approval for shipping the metallic elements abroad. It also announced permitting requirements on exports of technologies used in the mining, smelting and recycling of rare earths, adding that any export requests for products used in military goods would be rejected.
On social media, Trump described the export controls as “shocking” and “out of the blue.” He said China is “becoming very hostile” and that it’s holding the world “captive” by restricting access to the metals and magnets used in electronics, computer chips, lasers, jet engines and other technologies.
Trump said in a post that “starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying.” The president also said the U.S. government would respond to China by putting its own export controls “on any and all critical software” from American firms.
The Chinese Embassy in Washington did not immediately respond to an Associated Press request for comment.
Analysts say there’s time to de-escalate
Trump did not formally cancel the meeting with Xi, so much as indicating that it might not happen as part of a trip at the end of the month in Asia. The trip was scheduled to include a stop in Malaysia, which is hosting the Association of Southeast Asian Nations summit; a stop in Japan; and a visit to South Korea, where he was slated to meet with Xi ahead of the Asia-Pacific Economic Cooperation summit.
Sun Yun, director of the China program at the Stimson Center, said Beijing’s move was a reaction to U.S. sanctions of Chinese companies this week and the upcoming port fees targeting China-related vessels — but said there’s room for de-escalation to keep the leaders’ meeting alive. “It is a disproportional reaction,” Sun said. “Beijing feels that de-escalation will have to be mutual as well. There is room for maneuver, especially on the implementation.”
Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies in Washington, D.C., said China holds leverage because it dominates the market for rare earths with 70% of the mining and 93% of the production of permanent magnets made from them, which are crucial to high-tech products and the military.
“These restrictions undermine our ability to develop our industrial base at a time when we need to. And then second, it’s a powerful negotiating tool,” she said.
Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies, a think tank, said Trump’s post could “mark the beginning of the end of the tariff truce” that had lowered the tax rates charged by both countries.
“Mutually assured disruption between the two sides is no longer a metaphor,” Singleton said. “Both sides are reaching for their economic weapons at the same time, and neither seems willing to back down.” JOSH BOAK and DIDI TANG, WASHINGTON, MDT/AP
China vows to stand firm against tariff threat
China signaled yesterday that it would not back down in the face of a 100% tariff threat from President Donald Trump, urging the U.S. to resolve differences through negotiations instead of threats.
“China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one.”
The response came two days after Trump threatened to jack up the tax on imports from China by Nov. 1 in response to new Chinese restrictionson the export of rare earths, a key ingredient for many consumer and military products.
The back and forth threatens to derail a possible meeting between Trump and Chinese leader Xi Jinping and end a truce in a tariff war in which new tariffs from both sides briefly topped 100% in April.
Trump has raised taxes on imports from many U.S. trading partners this year, seeking to win concessions in return for tariff reductions. China has been one of the few countries that hasn’t backed down, relying on its economic clout.
“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” the Commerce Ministry said in its online post, which was presented as a series of answers from an unnamed spokesperson to questions from unspecified media outlets.
The statement called for addressing any concerns through dialogue.
“If the U.S. side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests,” the post said.
Both sides accuse the other of violating the spirit of the truce by imposing new restrictions on trade.
Trump said China is “becoming very hostile” and that it’s holding the world captive by restricting access to rare earth metals and magnets.
China’s new regulations require foreign companies to get special approval to export items that contain even small traces of rare earths elements sourced from China. These critical minerals are needed in a broad range of products, from jet engines, radar systems and electric vehicles to consumer electronics including laptops and phones.
China accounts for nearly 70% of the world’s rare earths mining and controls roughly 90% of global rare earths processing. Access to the material is a key point of contention in trade talks between Washington and Beijing.
The ministry post said that export licenses would be granted for legitimate civilian uses, noting that the minerals also have military applications.
The Chinese Commerce Ministry post said that the U.S. has introduced several new restrictions in recent weeks, including expanding the number of Chinese companies subject to U.S. export controls.
It also said that the U.S. is ignoring Chinese concerns by going forward with new port fees on Chinese ships that take effect tomorrow. China announced Friday that it would impose port fees on American ships in response. MDT/AP
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