Trump Threatens ‘Massive’ Tariff Hike After China’s “Sinister and Hostile Move”
President Donald J. Trump has issued a sharp warning to Beijing, threatening a “massive increase of tariffs” and signaling that he may cancel his upcoming meeting with Chinese President Xi Jinping. The move follows what one lawmaker has described as an “economic declaration of war” by China — a new export control policy that could upend global supply chains.
China’s Rare Earths Power Play
Beijing announced new export restrictions that will take effect on December 1, mandating that foreign companies obtain licenses to export any product containing any amount of rare earth materials. These minerals are critical to the production of high-tech goods ranging from fighter jets to smartphones.
China currently mines around 70% of the world’s rare earths and processes about 90% of the global supply, effectively dominating a market essential to modern technology. The new restrictions also tighten limits on equipment used to refine these materials and to produce batteries for electric vehicles, according to The New York Times.
Congressman: “An Economic Declaration of War”
Republican Rep. John Moolenaar of Michigan, who chairs the House Select Committee on China, blasted the decision in a fiery statement.
“China’s action today is an economic declaration of war against the United States and a slap in the face to President Trump amid his efforts to fight for a level playing field.
China has fired a loaded gun at the American economy, seeking to cut off critical minerals used to make the semiconductors that power the American military, economy, and devices we use every day including cars, phones, computers, and TVs,”
Moolenaar said in a post on the committee’s website.
President Trump: “A Sinister and Hostile Move”
President Trump addressed the escalating situation on Truth Social, warning that Beijing’s actions are deeply troubling and could trigger major global disruption.
“Some very strange things are happening in China! They are becoming very hostile, and sending letters to Countries throughout the World, that they want to impose Export Controls on each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it’s not manufactured in China.
Nobody has ever seen anything like this but, essentially, it would ‘clog’ the Markets, and make life difficult for virtually every Country in the World, especially for China,”
Trump wrote, adding that several nations had already contacted his administration expressing outrage over Beijing’s “great Trade hostility.”
The President said he had suspected China’s friendliness was “too good to be true.”
“Our relationship with China over the past six months has been a very good one, thereby making this move on Trade an even more surprising one. I have always felt that they’ve been lying in wait, and now, as usual, I have been proven right!
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, starting with the ‘Magnets’ and, other Elements that they have quietly amassed into somewhat of a Monopoly position, a rather sinister and hostile move, to say the least.”
A Firm American Response
President Trump vowed that the United States will not remain passive.
“The U.S. has Monopoly positions also, much stronger and more far reaching than China’s. I have just not chosen to use them, there was never a reason for me to do so — UNTIL NOW!
For every Element that they have been able to monopolize, we have two. I never thought it would come to this but perhaps, as with all things, the time has come. Ultimately, though potentially painful, it will be a very good thing, in the end, for the U.S.A.”
He added that one major response under consideration is a “massive increase of Tariffs” on Chinese imports, alongside other potential countermeasures being reviewed by the administration.
Trump Signals He May Skip Xi Meeting
In closing his statement, President Trump hinted that his scheduled meeting with Xi at the APEC summit in South Korea might now be off the table.
“I have not spoken to President Xi because there was no reason to do so. This was a real surprise, not only to me, but to all the Leaders of the Free World. I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so.”