Trump threatens a massive response to Beijing after it imposes restrictions on exports of rare earth technology and components
US President Donald Trump said on Friday there was no reason to meet with his Chinese counterpart Xi Jinping as scheduled in two weeks, expressing anger at Beijing’s decision to impose additional controls on exports of rare earth technology and components.
Trump considered China very hostile, threatening via his Truth Social platform with a huge increase in tariffs.
China is the world’s largest producer of these essential industrial minerals, and Washington has accused it of exploiting its dominance in this field.
The Chinese Ministry of Commerce announced in a statement that the new controls announced Thursday relate to the export of technologies related to the extraction and production of these materials.
“It was a real surprise,” Trump commented.
Meanwhile, China announced on Friday that it would impose special tariffs on US ships in its ports in retaliation for similar measures taken by the United States in April.
“I was scheduled to meet with President Xi in two weeks at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, but it appears there is no longer a reason for that,” Trump said.
The New York Stock Exchange fell after the US president’s announcement, which ended a period of relative thaw in relations between Beijing and Washington.
At approximately 16:15 GMT, the Dow Jones index lost 1.14%, the Nasdaq index fell 2.03%, and the S&P 500 index fell 1.51%.
The US President announced that he will have to launch a financial counterattack against Chinese restrictions.
Trump added on Truth Social that one option on the table is to impose a massive increase in tariffs on Chinese goods imported into the United States.
Trump confirmed that many other retaliatory measures are being seriously considered, saying that “China cannot be allowed to hold the world hostage, but that appears to have been their plan for some time”.
Sino-US trade relations witnessed fluctuations in 2025.
Trump held a conversation with Xi in September that he described as very productive.
It was the third conversation between the two leaders since the beginning of the year.
Trump also spoke about his visit to China next year, and a visit by Xi to the United States.
Amid the trade war launched by the US President since his return to power on January 20, tariffs between the two countries have reached levels three times higher than normal, disrupting supply chains.
In May, Washington and Beijing reached an agreement aimed at calming tensions by temporarily reducing tariffs to 30% on Chinese products imported into the United States and 10% on American goods imported into China.
It’s worth noting that, this trade truce is scheduled to last until November 10.
