Trump Threatens Massive Tariffs After China Tightens Rare Earth Export Controls

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President Trump has threatened to impose massive tariffs on China after Beijing tightened controls on rare earth exports, critical for key industries. Trump declared there’s "no reason" to meet Xi Jinping unless China reverses these measures, escalating tensions in ongoing US-China trade disputes in October 2025. The situation risks complicating future diplomatic talks

In early October 2025, President Donald Trump issued strong warnings against China following Beijing’s decision to impose expanded export controls on rare earth elements and critical minerals. These materials are vital for numerous global industries, including electronics, automotive, and semiconductors.

Trump characterized China's move as “sinister and hostile,” accusing Beijing of attempting to hold the world “captive” by leveraging its near-monopoly on these essential resources. He indicated surprise at the timing of the announcement, which coincided closely with peace efforts in the Middle East. The President warned that the United States has “much stronger monopoly positions” over certain elements but had not yet employed them, saying, “UNTIL NOW!”

Originally planning to meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month, Trump now declared there is “no reason” to proceed with the meeting unless China revokes or eases its new trade restrictions. He threatened a “massive increase” in tariffs on Chinese goods and hinted at other retaliatory economic measures to counter China's trade hostility.

China's recent actions include requiring foreign entities to secure licenses for exporting products containing rare earths and charging extra port fees on U.S. vessels starting October 14. These moves are seen as Beijing’s attempt to tighten control over high-tech manufacturing supply chains amid ongoing trade disputes with the U.S.

Despite these tensions, the U.S.-China relationship had shown tentative signs of improvement earlier in 2025, with discussions on trade, security, and other issues. Trump had even accepted invitations for reciprocal visits planned for 2026. However, the rare earth export policy changes have reignited frictions, complicating prospects for dialogue.

Analysts note that both presidents are maneuvering for leverage ahead of their expected meetings, but the recent trade escalation risks derailing progress, at least temporarily.