China’s decision on October 10 to restrict exports of rare earth minerals began a second round of retaliatory measures.
President Trump accuses China of monopolizing rare earths, threatens retaliation
President Donald Trump has criticized China’s rare earth export restrictions and threatened retaliatory tariffs.
Two weeks before he was scheduled to meet with Chinese President Xi Jinping, President Donald Trump told reporters that his spat with China over trade had escalated into a full-blown trade war.
Asked by reporters whether the United States would enter into a “sustained trade war” with China if they fail to reach an agreement at a meeting with President Xi Jinping in South Korea at the end of this month, the president said, “We are currently in a trade war.”
“We have 100% tariffs,” President Trump said, referring to the tariffs that have recently threatened China. “If there were no tariffs, we would be exposed as nothing.”
On October 14, President Trump announced that the United States would stop purchasing edible oil from China in response to China’s decision to remove the United States from its list of soybean suppliers. In a post on Truth Social, President Trump called this an “economically hostile act.”
China is the largest buyer of U.S. soybeans, according to the U.S. Soybean Association.
In retaliation for U.S. tariffs imposed by President Trump in April, China has stopped purchasing U.S. soybeans and has instead switched to supplies from Argentina and Brazil.
China’s decision to restrict exports of rare earth minerals on October 10 triggered a second wave of retaliatory measures after President Trump announced “reciprocal” tariffs on dozens of countries in April. A tariff truce was established with China in August, suspending triple-digit tariffs for 90 days.
President Trump has said he will impose 100% tariffs on China starting November 1 in response to China’s restrictions on rare earth minerals that are essential to U.S. industry. This would be in addition to the 30% tariff that the United States currently imposes on products from China.
From 2020 to 2023, China accounted for 70% of U.S. imports of rare earths used to make magnets, electronics, and defense systems.
Mr. Trump and Mr. Xi are scheduled to meet on October 31st at the Asia-Pacific Economic Cooperation Conference in Seoul, South Korea.
