US President Donald Trump revived the trade war against China, announcing plans to sharply increase tariffs in retaliation for China’s curbs on critical mineral exports, according to media reports. On his social media platform Truth Social, Trump stated that he will impose 100 percent tariffs on Chinese imports, which is over and above any tariff that they are currently paying, beginning as of November 1, alongside new export controls on “any and all critical software”. Alongside the tariff threat, Trump said he saw no reason to proceed with the scheduled meeting with China’s president Xi Jinping at the upcoming APEC summit in South Korea.
These latest statements by Trump came after China expanded its export controls on rare earth elements, materials essential for the production of electric vehicles, aircraft and military equipment. Trump called the Chinese move “shocking” and a “very, very bad” step that demanded a firm response.
China currently dominates the global market for these materials, producing over 90 percent of the world’s processed rare earths.
Trump also hinted at further measures, including potential export controls on airplanes and parts, saying Washington must “financially counter” what he called China’s “hostile order”.