‘No Reason To Meet Xi’: Donald Trump Slams China Amid Rare Earth Export Curbs
Posting on his Truth Social platform, US President Donald Trump said his administration was weighing a 'massive increase' in tariffs on Chinese goods.
US President Donald Trump warned on Friday that there was "no reason" to meet Chinese leader Xi Jinping during his upcoming trip to South Korea.
The threat came just a day after Beijing announced new restrictions on rare earth exports essential to American industries, prompting fears of renewed economic instability.
Posting on his Truth Social platform, Trump said his administration was weighing a 'massive increase' in tariffs on Chinese goods, alongside "many other countermeasures under serious consideration."
While the president has not formally cancelled the meeting with Xi, he suggested it was unlikely to occur during his scheduled visit to Asia at the end of the month, which includes stops in Malaysia, Japan, and South Korea ahead of the Asia-Pacific Economic Cooperation summit.
Trump's Reaction To China's New Measures
China’s new measures require foreign companies to obtain special approvals to export rare earth elements that are critical for electronics, military technologies, and renewable energy systems, as well as imposing permitting rules on mining and smelting technologies.
Any applications for products tied to military uses will be rejected outright. Trump accused Beijing of "becoming very hostile" and holding the world "captive" by restricting access to these strategic resources.
The announcement rattled markets, sending the S&P 500 down 2.7%, its worst single-day performance since April.
Analysts warned the export curbs would disrupt global supply chains, as China currently controls 70% of rare earth mining and 93% of production of permanent magnets used in advanced manufacturing and defence.
Disputes Over US Access To Rare Earths Remain
Trump linked Beijing’s timing to the ceasefire in Gaza, suggesting, without evidence, that it was intended to overshadow US diplomatic efforts there.
Meanwhile, the European Union Chamber of Commerce in China cautioned that the new restrictions add 'further complexity' to an already strained rare earth export system.
The tensions mark a potential rupture in the fragile trade détente reached earlier this year, when tariffs were lowered following talks in Switzerland and the United Kingdom. Previously, the US had imposed duties of up to 145% on Chinese imports, with China retaliating at 125% before both sides eased to 30% and 10% respectively.
Still, fundamental disputes remain over US access to rare earths, China’s ability to import high-end computer chips, soybean sales, and tit-for-tat port fees.
(With inputs from AP/PTI)
