New Delhi, Oct 11 (UNI) Intensifying trade tensions with China, US President Donald Trump announced a 100 percent tariff on Chinese goods in response to Beijing’s export policy of tightening its control over critical minerals and rare earth elements—key resources vital to global technology and defense industries.
Trump further clarified on his earlier comments regarding his planned meeting with Xi, saying he had not officially canceled the summit.
Trump revealed the tariff increase via Truth Social, stating the new duties would take effect on November 1, or possibly sooner. These tariffs would supersede the existing duties on Chinese goods, which have been in place since the previous trade conflict.
Additionally, Trump announced his administration would implement export controls on “any and all critical software,” in response to China’s tightened grip on rare earth exports.
“It is impossible to believe that China would have taken such an action, but they have, and the rest is history,” Trump posted on Truth Social.
However, he expressed surprise at China’s sudden imposition of the export restrictions, calling them “out of the blue.” Speaking to reporters at the White House, Trump added, “No, I haven’t canceled. However, I’m not sure if we’ll have it. I’ll be there regardless. I would assume we might have it, but they hit the world with something. It was shocking. Out of the blue, they came up with this whole import-export concept, and nobody knew anything about it.”
Trump reiterated that the additional tariffs and export controls would be imposed in retaliation for what he described as Beijing’s “extraordinarily aggressive” actions. The tariffs, effective November 1, will target a wide range of Chinese goods, exacerbating the already tense trade relationship between the two nations. Stock markets reacted negatively to the news, with the Nasdaq falling 3.6% and the S&P 500 dropping 2.7 pc.
China introduced new restrictions this week that require foreign entities to obtain licenses to export any products containing more than 0.1 percent rare earth elements sourced from or processed in China. China currently controls approximately 70 percent of the world’s supply of rare earth metals, which are essential for a wide range of technologies, from smartphones to military equipment.
Currently, Chinese goods face US tariffs of 30 pc, a measure Trump implemented during his first term, accusing Beijing of enabling the fentanyl trade and engaging in unfair trade practices.
Earlier in the week, Trump stated there was “no reason to meet” with Xi Jinping after Beijing’s “very hostile” actions regarding rare earth exports. He warned that the US was preparing to respond with “strong countermeasures.”
When asked if the US would revoke the additional tariffs if China rolled back its restrictions, Trump responded, “We’ll have to see what happens. That’s why I made it November 1.”
Trump also hinted at further export controls, suggesting that aircraft parts could be among the items targeted by the US. “A lot more. We have airplanes and their parts. We were just surprised by China. I have a very good relationship with President Xi, and they did that. This is not something that I instigated. This was just a response to something they did. And they didn’t really aim it at us. They aimed it at the whole world. I thought it was very, very bad,” he said.
The tariffs will be in addition to those already in place, marking a significant escalation in the trade standoff. Trump also reaffirmed that export controls on all critical software will begin on the same day.
