Tuesday, 02 January 2024 12:17 GMT

Trump Threatens New Tariffs On China Amid Beijing's Rare Earth Move, Says 'No Reason To Meet Xi Jinping At APEC'


(MENAFN- Live Mint) US President Donald Trump has issued a stern warning over China's recent moves to impose export controls on rare earth elements and other critical materials, calling the action“hostile” and unprecedented.

Posting on Truth Social, Trump wrote : "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."

Potential global impact

Trump claimed that the Chinese move could“clog” global markets and make life difficult for nearly every country: "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."

He added that the US and other nations have expressed anger over what he described as“great Trade hostility, which came out of nowhere.”

Trump highlights US monopoly on elements

The US President stressed that the US also holds strong positions in critical elements, but has not yet exercised them: "We have 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!"

Trump also described China's detailed letters outlining the elements they planned to withhold as“many pages long, and details, with great specificity, each and every Element that they want to withhold from other Nations.”

Timing raises questions

Trump questioned the timing of China's actions, noting it coincided with progress in the Middle East : "The Chinese letters were especially inappropriate in that this was the Day that, after three thousand years of bedlam and fighting, there is PEACE IN THE MIDDLE EAST. I wonder if that timing was coincidental?"

Trump to cancel planned Xi meeting at APEC

Trump said he has not spoken to Chinese President Xi Jinping following China's recent announcement of export controls on rare earths and other critical materials.

Trump called the move“a real surprise, not only to me, but to all the Leaders of the Free World.” He noted that a planned meeting with Xi at the upcoming APEC summit in South Korea, scheduled for two weeks from now, has been rendered unnecessary due to the unexpected developments.

Possible US response

The President indicated that the US may respond financially and through tariffs: "Dependent on what China says about the hostile 'order' that they have just put out, I will be forced, as President of the United States of America, to financially counter their move. For every Element that they have been able to monopolize, we have two."

He added: "One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America. There are many other countermeasures that are, likewise, under serious consideration."

Trump concluded his post with a reassurance: "Ultimately, though potentially painful, it will be a very good thing, in the end, for the U.S.A."

This is a developing story.

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