Former President Donald Trump has escalated tensions with China, threatening a “massive increase” in tariffs on Chinese imports and suggesting he may cancel a scheduled meeting with Chinese President Xi Jinping. The announcement comes after Beijing imposed stricter export controls on rare earth materials critical to U.S. industries.
What Trump Is Saying
In a post on Truth Social, Trump claimed China’s new restrictions on rare earth exports are aggressive and “hostile,” saying they jeopardize U.S. manufacturing and global supply chains.
He stated there is now “no reason” to go through with the planned Xi meeting at the upcoming APEC summit in South Korea, canceling diplomatic engagement in response.
Trump warned that the administration is “calculating” a massive increase of tariffs on Chinese products and weighing additional counter-measures.
China’s Reaction & Export Controls
China’s export restrictions focus on rare earth minerals and elements used in advanced technology, such as magnets, semiconductors, and defense hardware.
Beijing’s move is seen by some analysts as a strategic attempt to pressure the U.S. and reassert leverage in trade negotiations.
While the Chinese government has not formally confirmed the cancellation of the proposed summit, the rhetoric signals a sharp break in relations.
Market & Economic Impact
The tariff threat rattled global markets: U.S. stock indexes plunged, with the S&P 500 suffering one of its largest single-day drops in months.
Investors sought safety in Treasuries and gold, while fears grew about disruption to tech supply chains and rising costs for U.S. manufacturers reliant on rare earth imports.
The move risks undoing progress made on recent trade de-escalation efforts between the two nations.
Strategic & Diplomatic Consequences
Canceling a meeting with Xi — or publicly questioning its necessity — signals a more confrontational U.S. posture and complicates diplomatic channels.
Trump’s remarks may strain ties not just with China, but with allies who depend on stable trade and supply chains.
The U.S. may face retaliation from China in other domains, including tech, investment flows, or bilateral trade restrictions.
