United States (Parliament Politics Magazine) – President Donald Trump threatened to cancel his upcoming meeting with Chinese President Xi Jinping due to China’s new export controls on rare earth minerals. He warned of imposing “massive” tariffs on Chinese imports amid escalating trade tensions.
Trump’s threat following China’s export restrictions
As reported by Jonathan Swan of Axios, President Trump reacted strongly to China’s announcement of tighter export controls on rare earth minerals critical to U.S. industries, calling the move “sinister and hostile.” Trump described the new restrictions as an attempt by China to hold the world “captive” and disrupt global supply chains. He warned that the U.S. is considering a “massive increase of tariffs” on Chinese products in response.
Planned meeting with Xi Jinping at APEC in South Korea
The two leaders were scheduled to meet at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea in approximately two weeks. However, Trump suggested on social media platforms that there now seems “no reason” to meet Xi, citing China’s actions as a major obstacle. Trump stated his surprise and disappointment, saying the move was unexpected not just for him but for “all the leaders of the free world”.
China’s rare earth controls and implications
The tightened export regulations cover 12 of the 17 rare earth elements, which are vital for advanced technologies, including artificial intelligence, defence systems, and electronics. According to Cristina Maza of Al Jazeera, these minerals are predominantly refined in China, giving Beijing leverage over global supply chains. The new export licensing rules also cover related processing technologies, raising concerns about the wider impact on industries worldwide.
Trump’s accusations of “trade hostility”
As reported by Natasha Bertrand of CNN, Trump accused China of a “hostile” trade move that catches many by surprise amidst ongoing delicate negotiations. He highlighted that China’s announcement coincided with a breakthrough peace agreement in the Middle East, questioning the timing of China’s decision. Trump called China’s behavior “very strange” and warned that the U.S. has “much stronger monopoly positions” in critical sectors compared to China.
Threats of retaliatory tariffs
Trump hinted at retaliatory measures, including a significant rise in tariffs against China, potentially reigniting the U.S.-China trade war that had been temporarily subdued earlier in the year. The threat of renewed tariffs sparked immediacy in financial markets, with U.S. stock indices dropping and investors seeking safe havens such as Treasury bonds and gold.
Impact on diplomatic relations and future talks
White House officials expressed concern that China’s move could jeopardise the meeting planned at APEC, warning the situation was escalating even before Trump’s public announcements, according to CNN’s sources. The tension arrives against a backdrop of efforts to maintain a fragile trade truce enacted earlier in 2025, with ongoing discussions around technology export controls and agricultural deals.
Additional Chinese measures affecting U.S. firms
Reuters reported that alongside rare earth export controls, China has initiated a monopoly probe into Qualcomm, the American semiconductor firm, which could impede its acquisition plans, signalling broader regulatory pressure on U.S. tech companies operating there. New port fees have also been announced for vessels linked to the U.S., hinting at wider economic pressure tactics.
Responses from financial markets
Following Trump’s announcement, the S&P 500 index fell by approximately 1.4% during trading hours, reflecting investor worries over renewed U.S.-China trade friction. The US dollar weakened against major currencies, and demand for gold surged as a safe haven asset in response to the uncertainty.
Broader strategic implications
Experts highlight that rare earth elements are critical for maintaining technological and defence superiority. China’s dominance in refining these materials gives it considerable leverage, prompting the U.S. and its allies to rethink supply chain dependencies. Trump’s confrontational approach signals a readiness to escalate economic measures to counter Beijing’s strategy.
Statements by Trump
In his posts on Truth Social and other platforms, Trump said:
- “I was to meet President Xi in two weeks at APEC in South Korea, but now there seems to be no reason to do so.”
- “This was a real surprise… not only to me, but to all the leaders of the free world.”
- China’s move is “sinister and hostile” and attempts to hold the world “captive.”
- The US is considering a “massive” tariff increase on Chinese imports.
- China is “becoming very hostile on trade matters”.