President Trump on Friday threatened to impose more tariffs on imports from China and cancel an upcoming meeting with Chinese leader Xi Jinping, saying that curbs that China put out this week on its exports of rare earth minerals would “‘clog’ the Markets, and make life difficult for virtually every Country in the World.”
“There is no way that China should be allowed to hold the World ‘captive,’ but that seems to have been their plan for quite some time,” the president wrote on Truth Social.
Mr. Trump wrote that he was scheduled to meet Mr. Xi in two weeks at an international economic conference in South Korea, “but now there seems to be no reason to do so.”
The president also threatened retaliation, saying he would “financially counter their move.” He added, “One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America. There are many other countermeasures that are, likewise, under serious consideration.”
The Chinese government introduced restrictions on rare earth minerals earlier this year that clamped down on vital supplies for U.S. automakers and defense manufacturers. On Thursday, Beijing escalated those controls, asserting broader jurisdiction over the global manufacture of semiconductors and other technology.
The Chinese government said it would require foreign companies to obtain a license to export products containing rare earths, as well for using certain rare earth refining or battery manufacturing technology worldwide. The new rules are set to take effect Dec. 1.
China dominates the global supply chain for many such minerals, and its restrictions have caused significant anxiety among U.S. companies. Analysts said the rules could scramble the supply chains of some of the world’s biggest companies, including Nvidia and Apple.
Ana Swanson covers trade and international economics for The Times and is based in Washington. She has been a journalist for more than a decade.
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