China has restricted exports of rare earth minerals, key to electronics, after President Trump imposed a 57% tariff on imports from China. President Trump has threatened to raise tariffs to 157% if a trade deal is not reached.
President Trump imposes 100% additional tariffs on imports from China
President Donald Trump said the United States would impose 100% tariffs on all imports from China in retaliation for new export restrictions on rare earth minerals planned by the Chinese government.
WASHINGTON – President Donald Trump predicted a “great” trade deal with China would be reached by the end of this month despite ongoing tariffs and a trade war over rare earth minerals.
“I think ultimately we’re going to have a great trade deal with China,” Trump told reporters at the White House.
His optimism stood in contrast to China’s trade war over tariffs and threats to withhold rare earths from the rest of the world. President Trump met with Australian Prime Minister Anthony Albanese on October 20 to announce an agreement to invest $1 billion in joint projects to process rare earth minerals, which are essential for electronics and military equipment.
Their announcement came after China announced restrictions on rare earth exports on October 9th. In response, President Trump threatened to raise tariffs on Chinese imports to 157% if a trade deal is not reached by November 1.
In addition to rare earth regulations, China’s retaliatory tariffs have all but eliminated imports of U.S. agricultural products from the country. China is the largest importer of U.S. soybeans, and farmers are concerned about soybean sales this year.
“They stopped buying our soybeans because they thought it was a punishment,” Trump said of China. “This is a punishment for our farmers, but we will not allow that to happen.”
Despite the trade war, President Trump said China treats the United States with “tremendous respect” and expects the two countries to resolve their differences. He will visit South Korea on October 31st and November 1st, and is scheduled to meet with Chinese President Xi Jinping during his tour of Asia.
“I think we’ll come to an agreement,” President Trump said. “They threatened us with rare earths, and I threatened us with tariffs.”
Military issues are also expected to be discussed. But Trump declined to comment on tensions over the Taiwan Strait, where mainland China wants to regain control of the island it has declared independent.
“I’m not going to talk about that right now,” Trump said.
