In a move that raised the prospect of another trade war between the world’s two largest economies, Donald Trump has threatened again to impose “massive” US tariffs on China.
This came as the US President accused Beijing of “very hostile” moves to restrict exports of rare earths needed for American industry.
Trump wrote on his Truth Social website, “I never thought it would come to this but perhaps, as with all things, the time has come,” claiming, “Ultimately, though potentially painful, it will be a very good thing, in the end, for the U.S.A.”
“One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America. There are many other countermeasures that are, likewise, under serious consideration.”
Donald Trump
China is the world’s largest producer of rare earths, producing more than 90% of the world’s processed rare earths and rare-earth magnets.
The 17 elements are critical for manufacturers of everything from electric cars to plane engines. Earlier this week, Beijing significantly expanded its export controls over rare earths, adding five new materials to its control list.
Its last expansion of controls, back in April, prompted supply shortages around the world before a series of diplomatic deals helped resolve some of the issues.
Trump said that he was surprised to learn that China has been sending letters to countries worldwide saying it planned to impose “export controls” on “every element of production” related to rare earths.
“I have always felt that they’ve been lying in wait, and now, as usual, I have been proven right!” Trump claimed in his post.
“There is no way that China should be allowed to hold the World ‘captive,’ but that seems to have been their plan for quite some time, starting with the ‘Magnets’ and, other Elements that they have quietly amassed into somewhat of a Monopoly position, a rather sinister and hostile move, to say the least.
“But the US has Monopoly positions also, much stronger and more far reaching than China’s.”
Donald Trump
The US President’s threat sets the stage for another escalation in his volatile dispute with China.
Over the summer, relations had improved between Washington and Beijing, and Trump agreed to drastically reduce steep tariffs he imposed on China earlier this year, following negotiations between the two countries.
Just four months ago he described US relations with the country as “excellent” after signing off on a tariff reduction deal.Trump repeatedly hiked US tariffs on Chinese goods in the spring, amid spiraling tensions between the two countries, to a peak of 145%.
Beijing hit back, raising its own tariffs on US exports to 125%. However, talks between officials, amid widespread concern over the impact of such exorbitant duties on the world economy, led to a fragile detente.
US tariffs on Chinese products fell to 30%, while Chinese tariffs on US goods dropped to 10%.
Trump Pours Water On Meeting With Xi
Moreover, Trump suggested that a planned meeting between him and Xi Jinping in South Korea later this month may no longer happen, saying that “there seems to be no reason” to meet with the Chinese President.
Also today, China hit US-owned vessels docking in the country with tit-for-tat port fees, in response to the American government’s planned port fees on Chinese ships, expanding a string of retaliatory measures before trade talks between Trump and Xi.
According to China’s Ministry of Transport, vessels owned or operated by American companies or individuals, and ships built in the US or flying the American flag, would be subjected to a 400 yuan ($56) per net ton fee per voyage if they dock in China.
The ministry disclosed that the fees would be applied on the same ship for a maximum of five voyages each year, and would rise every year until 2028, when it would hike to 1,120 yuan ($157) per net ton.
They would take effect on October 14, 2025, the same day when the United States is due to start imposing port fees on Chinese vessels.
