WASHINGTON — President Donald Trump on Friday threatened to place an additional 100% tax on Chinese imports starting on Nov. 1 or sooner, potentially escalating tariff rates close to levels that in April fanned fears of a global recession.
“But I don’t know that we’re going to have it,” he said during an Oval Office appearance on another subject.
Trump also suggested there may be time to ratchet down his steep new tariff threat.
On social media, Trump described the export controls as “shocking” and “out of the blue.”
Earlier this year, some investors began engaging in what the Financial Times called the “TACO” trade, which stands for “Trump Always Chickens Out.”
WASHINGTON — President Donald Trump threatened Friday to impose a 100 percent tax on Chinese imports beginning in November. 1 or sooner, which might raise tariff rates to levels that stoked concerns about a worldwide recession in April.
On social media, the president voiced his displeasure with China’s recent export restrictions on rare earth elements, saying that “there seems to be no reason” to meet with Chinese leader Xi Jinping during a planned visit to South Korea.
Later on, Trump assured reporters that he had not called off the meeting. “But I don’t know that we’re going to have it,” he stated when discussing another topic in the Oval Office. Since I plan to attend anyhow, I suppose we could have it. “,”.
Additionally, Trump hinted that there might be time to soften his harsh new tariff threat. We will have to wait and see what transpires. Hence, I made it in November. 1,” he declared.
new restrictions from China.
The Chinese government imposed restrictions on rare earth mineral access on Thursday, requiring foreign businesses to obtain special authorization before exporting the metallic elements. In addition, it declared that export requests for products used in military goods would be denied and imposed permitting requirements on exports of technologies used in the mining, smelting, and recycling of rare earths.
Trump called the export restrictions “shocking” and “out of the blue” on social media. According to him, China is “becoming very hostile” and “capturing” the world by limiting access to metals and magnets that are used in computer chips, electronics, lasers, jet engines, and other technologies.
“The United States of America will impose a tariff of 100 percent on China, over and above any tariff that they are currently paying,” Trump stated in a post, “beginning November 1st, 2025 (or sooner, depending on any further actions or changes taken by China).”. The president added, “The U. S. . The government would impose its own export restrictions “on any and all critical software” from American companies in retaliation for China.
An Associated Press request for comment from the Chinese Embassy in Washington was not immediately answered.
Trump has a reputation for employing threats as a strategy.
Due to concerns about the growing tensions between the biggest economies in the world, the SandP 500 fell 2 points and 7 percent. The market had its worst day since the president last complained about such high import taxes in April. However, before the president clarified the details of his threat, the stock market closed.
In addition to rekindling the global trade war that Trump started, the administration’s previous remarks suggested that imposing import taxes on top of the 30 percent already imposed on Chinese goods would lead to a breakdown in trade between the U.S. A. and China in ways that might lead to a slowdown in global growth.
Trump is renowned for reversing his threats, even though his language was unambiguous. Some investors started making what the Financial Times dubbed the “TACO” trade—which stands for “Trump Always Chickens Out”—earlier this year. “.”.
Large tariffs could exacerbate the president’s political concerns and raise inflation at a time when the labor market seems precarious and the effects of a government shutdown are beginning to worsen due to federal employee layoffs.
Since the trade war was sparked by the import taxes that were announced earlier this year, the United States and China have been vying for advantages in trade negotiations. Following talks in Switzerland and the UK, both nations decided to lower tariffs; however, tensions still exist because China has persisted in denying America access to the hard-to-mine rare earths required for a variety of U.S. S. gadgets.
The recent announcements “add further complexity to the global supply chain of rare earth elements,” according to a statement from the European Union Chamber of Commerce in China, which highlighted the backlog of export license applications from Beijing’s previous round of export controls on rare earth elements.
The trade relationship has other points of contention, such as the U.S. S. . Limitations on China’s imports of cutting-edge computer chips, sales of soybeans grown in the United States, and a number of tit-for-tat port fees are being imposed by both nations beginning Tuesday.
There is time to defuse the situation, according to analysts.
As part of a trip to Asia at the end of the month, Trump hinted that the meeting with Xi might not take place, but he did not officially cancel it. Prior to the Asia-Pacific Economic Cooperation summit, he was supposed to meet with Xi in South Korea. The itinerary also included stops in Japan and Malaysia, which is hosting the Association of Southeast Asian Nations summit.
The Stimson Center’s China program director, Sun Yun, said Beijing’s action was a response to U. S. . “There is room for de-escalation to keep the leaders’ meeting alive,” he said, referring to this week’s sanctions on Chinese companies and the impending port fees targeting vessels with ties to China. Sun stated, “It is a disproportional reaction.”. “De-escalation, according to Beijing, will also need to be reciprocal. There is flexibility, particularly in terms of implementation. “,”.
The director of the Center for Strategic and International Studies’ Critical Minerals Security Program in Washington, D.C., is Gracelin Baskaran. claimed that because China controls 70% of the mining and 93% of the production of permanent magnets made from rare earths—which are essential for high-tech products and the military—it has substantial negotiating power.
“These limitations make it more difficult for us to expand our industrial base when it is most necessary. She added, “Secondly, it’s an effective negotiating tool.”.
According to Craig Singleton, senior director of the China program at the think tank Foundation for Defense of Democracies, Trump’s announcement may “mark the beginning of the end of the tariff truce” that had reduced both nations’ tax rates.
“The two sides’ mutually assured disruption is no longer a metaphor,” Singleton stated. Both sides appear unwilling to compromise as they simultaneously aim for their economic weapons. “.”.
