US President Donald Trump on Friday announced further 100 per cent tariffs on Chinese products from November 1 after China restricted exports of rare earth minerals.
"Based on the fact that China has taken this unprecedented position... the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying," Trump said on Truth Social.
This comes soon after Trump’s previous post in which he called China’s restrictions “very hostile” and criticised the country for sending letters to nations worldwide outlining controls on “each and every element of production having to do with Rare Earths.” He said, “There is no way that China should be allowed to hold the World 'captive.'”
Trump also addressed his plans to meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit later this month in South Korea. On being asked if the meeting had been cancelled, he said, "No, I haven't cancelled. But I don't know that we're going to have it. I'll be there regardless... They hit the world with something... it was shocking... Out of the blue, they came up with this whole import-export concept, and nobody knew anything about it."
Regarding whether he would revoke the additional tariffs if China rolls back the export controls, Trump added, "We'll have to see what happens. That's why I made it November 1st."
He warned that the tariffs could be “massive,” potentially reigniting the trade war between Washington and Beijing.
The announcement triggered a sharp sell-off on Wall Street, with the Nasdaq down two percent and the dollar weakening against major currencies.
Beijing’s Ministry of Commerce announced the new rules on Thursday, requiring special approval for any exports of rare earth elements or products containing even trace amounts of them. China, which dominates global rare earth production and processing, said the curbs are meant to “safeguard national security.” The restrictions are likely to impact key industries, from defence to electronics, that rely on the minerals.
There was no immediate reaction from Beijing.
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