Trump threatens China with new tariffs and “countermeasures”

US President Donald Trump on Friday threatened a “massive” increase in tariffs on Chinese products, rattling markets and adding a new dose of uncertainty to trade relations between the world’s largest economies.

Trump said in surprise that China has become “very hostile” on trade matters Truth is a social function. “I was scheduled to meet President Xi in two weeks, at the Asia-Pacific Economic Cooperation (APEC) forum in South Korea, but now there seems to be no reason to do so.” The leaders are expected to announce a full trade agreement during the meeting.

On Thursday, China announced a series of new restrictions on the trade of rare earth elements and related technologies.

A spokesperson for the Chinese Embassy in Washington, D.C., did not immediately respond to a request for comment on Trump’s post.

Both announcements from China and Trump were a surprise escalation in a trade war that had appeared to be winding down. The emerging certainty has helped lift stock markets to record levels. But the Truth Social president’s post on Friday immediately sent US stocks to session lows, with the S&P 500 falling more than 1% after earlier trading in positive territory. The Nasdaq index, which includes many technology companies that do business in China, fell by about 2%.

China’s new trade regulations require foreign companies to obtain special approval to export items containing even small traces of rare earth elements sourced from China. These important minerals are needed in a wide range of products, from jet engines, radar systems and electric vehicles to consumer electronics including laptops and phones.

China and the United States have held more than three rounds of trade talks this year, with discussions covering rare earth elements, TikTok and tariffs. After talks in May in Geneva, the administration said China had decided to ease controls on the export of rare earths.

In June, the two sides met again in London, where they announced another agreement on the issue. And after those conversations The United States said it expected the problem to be “resolved.”

In a Truth is a social function After those negotiations, Trump said: “Our agreement with China is accomplished.”

“The complete magnets and any necessary rare earths will be provided by China,” he added.

“They were kind of releasing them, but it was much slower than some companies thought was optimal,” Kevin Hassett, director of the National Economic Council, said of China’s rare earth exports at the time.

But American companies said throughout the talks that the flow of rare earth exports from China was intermittent at best. China dominates the supply of these important minerals, leaving companies with few other options.

A full trade agreement with China remains elusive even despite intense negotiations.

As with rare earth elements, US officials said in September that China had reached a “framework for a TikTok deal.” However, in previous weeks, China had not confirmed that such a deal had been agreed.

Many experts believe China’s strategy is to continue talks while reaching few concrete agreements.

“Beijing will be happy to continue negotiations between the United States and China, but it is unlikely to make concessions,” William Yang, a Taiwan-based senior Northeast Asia analyst at the International Crisis Group, told NBC News recently.

US officials plan to meet with their Chinese counterparts for further talks in November, when rare earth elements are likely to take center stage again.