(Image source from: x.com/WhiteHouse)
US President Donald Trump declared on Friday that there would be an additional 100 percent tax on imports from China and suggested he might cancel a planned meeting with Xi Jinping, reigniting tensions in the trade conflict over limitations on exports of rare earth minerals. Trump stated that these new taxes, along with US restrictions on "all important software," would start on November 1 as a response to what he labeled as China's "extremely aggressive" actions. "It's hard to believe that China would act this way, but they have, and the rest is History," he commented on Truth Social. The stock market dropped as the ongoing trade conflict between the US and China escalated, with the Nasdaq falling by 3.6 percent and the S&P 500 decreasing by 2.7 percent. Chinese products are facing current US import taxes of 30 percent due to tariffs that Trump imposed while claiming Beijing was involved in the fentanyl trade and other unfair practices.
China’s counter-tariffs are now set at 10 percent. Trump had warned about the tariffs just hours before in a lengthy unexpected post on his Truth Social platform that revealed China had informed nations worldwide about export limitations on rare earth minerals. These rare earth elements are essential for making everything from smartphones and electric vehicles to military equipment and renewable energy technologies. China is the leading country in the production and processing of these materials. "China should not be allowed to hold the world 'captive,'" Trump expressed, calling China’s position "very hostile." The US leader then questioned his intentions to meet Chinese president Xi at the upcoming Asia-Pacific Economic Cooperation (APEC) summit later this month.
This would have been the first meeting between the leaders of the two largest economies since Trump took office again in January. "I was set to meet President Xi in two weeks at APEC in South Korea, but now there seems to be no reason to proceed," he wrote. There was no immediate response from Beijing. The US president indicated he was puzzled about why China was acting at this moment. "Some very unusual things are happening in China! They are becoming very aggressive," he commented. Trump also mentioned that other nations have reached out to the US, expressing their displeasure with China's "great trade hostility, which appeared out of nowhere." He accused Beijing of "waiting silently" despite what he viewed as six months of good relations, which included significant progress in bringing TikTok's US operations under American control as mandated by a law passed by Congress the previous year.
His comments come just weeks after he had emphasized the significance of meeting Xi at the APEC summit and stated that he planned to visit China the following year. Earlier this year, Washington and Beijing had engaged in a back-and-forth tariff conflict that threatened to nearly stop trade between the two largest economies in the world.
Both parties ultimately reached an agreement to reduce conflicts, yet the ceasefire remains unstable. Last week, Trump mentioned he would urge Xi to increase soybean purchases from the United States as American farmers, an important voter group for his 2024 campaign, deal with the consequences of his trade conflicts. Earlier on Friday, China announced it would apply "special port fees" to vessels that are both operated by and constructed in the USA after Washington revealed tariffs on ships linked to China in April. Additionally, the US communications regulator reported that it had effectively eliminated "millions" of listings for prohibited Chinese goods from online shopping sites.
Brendan Carr, the head of the Federal Communications Commission, stated on X that "the Communist Party of China is involved in a multi-faceted strategy to introduce unsafe devices into the homes and businesses of Americans."
