US President Donald Trump has threatened to impose an additional 100 percent tariff on Chinese goods and said he might cancel his upcoming meeting with Chinese President Xi Jinping. His remarks have once again raised tensions between Washington and Beijing.
On Friday, Trump accused China of taking an “extraordinarily aggressive position on trade.” He warned that the US would impose “large-scale Export Controls on virtually every product they make” and on “all critical software.”
In a post on Truth Social, Trump said these restrictions will come into effect on November 1 this year.
Reaction to China’s rare earth export rules
Trump’s announcement came after China expanded its rare earth export controls earlier this week. Beijing added five new rare earth elements and imposed stricter rules for semiconductor users, tightening its control over the sector.
China is the world’s largest producer of rare earths, which are vital in making electric vehicles, aircraft engines, and military radars.
Trump likely to cancel meeting with Xi
Earlier this month, Trump had said he would meet Xi to discuss trade and other related issues. However, he now suggested that he might cancel the planned meeting.
The two leaders were expected to meet during the Asia-Pacific Economic Cooperation (APEC) forum in South Korea at the end of October.
“This was a real surprise, not only to me, but to all the Leaders of the Free World. I was to meet President Xi in two weeks . . . but now there seems to be no reason to do so,” Trump said.
China’s export control rules
China recently expanded its list of rare earth export restrictions by adding dozens of refining technologies. It also announced new rules that require foreign rare earth producers using Chinese materials to follow its compliance standards.
China produces over 90 percent of the world’s processed rare earths and magnets. The 17 rare earth elements are crucial in many modern technologies.
Exports of 12 of these elements are now restricted after the ministry added five more — holmium, erbium, thulium, europium, and ytterbium — along with related materials.