(MENAFN) In response to China’s recent restrictions on rare earth exports, U.S. President Donald Trump threatened to impose new punitive measures, including a significant increase in tariffs and export controls on critical software. Trump’s remarks, made on Friday, come after China’s announcement of tighter export limits on vital minerals used in high-tech manufacturing.

The U.S. president stated that starting November 1, 2025, or sooner depending on any additional actions from China, the U.S. would impose a 100% tariff on Chinese imports, beyond the existing tariffs. Trump made this announcement via his social media platform, Truth Social, and added that the U.S. would also introduce export controls on critical software. He expressed disbelief over China’s decision, asserting that this move made it impossible to proceed with a planned meeting with Chinese President Xi Jinping during the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

Trump's anger stems from China’s newly imposed restrictions, which, according to state media reports, broaden the scope of controls on rare earth elements. These include limits on the processing and manufacturing technologies for these materials, along with prohibitions on foreign partnerships that require prior government approval. The Chinese government has cited national security concerns as the reason for these export controls.

The Chinese Ministry of Commerce has clarified that the measures cover a wide range of activities, such as rare earth mining, smelting, separation, and the production of magnetic materials. It has also restricted the recycling of secondary rare earth resources and placed stringent rules on the assembly, maintenance, and upgrading of related production lines. Any export of technologies or data linked to these processes now requires official approval from the government.

This move by Beijing follows earlier restrictions imposed in April, which had already triggered global supply chain disruptions. Although new agreements with Europe and the U.S. have since allowed shipments to resume, the recent escalation signals continued tension in the trade relations between the two economic giants.

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