Trump has reignited trade tensions with Beijing, warning of “massive” U.S. tariffs on Chinese imports after accusing China of “very hostile” actions to curb exports of rare earth elements crucial to American manufacturing.
The move, echoing the tariff battles of his first term, rattled global markets, with Wall Street sliding sharply on renewed fears of an escalating U.S.–China trade war.
“I never thought it would come to this but perhaps, as with all things, the time has come,” Trump wrote on Truth Social, calling the restrictions “potentially painful” but ultimately “a very good thing, in the end, for the U.S.A.”
His post suggested a readiness to impose sweeping tariffs on Chinese goods while considering “many other countermeasures” in response to Beijing’s export limits.
The standoff centers on rare earths, vital minerals used in semiconductors, defense technology, and electric vehicles, over which China dominates global supply.
Trump’s remarks signal a hardening stance as he hinted that a planned meeting with Chinese President Xi Jinping in South Korea “may no longer happen,” citing “no reason” to meet under current conditions.
The renewed rhetoric underscores the fragility of the world’s two largest economies’ relationship, with markets bracing for policy shocks that could disrupt supply chains and slow global growth.
Analysts say the confrontation could reshape trade dynamics across energy, technology, and manufacturing sectors.
