According to US President Donald Trump, starting next month, he would levy an additional 100% duty on Chinese goods. Trump stated in a social media post that the US might impose export restrictions on essential software as well.
He retaliated over Beijing’s decision this week to tighten its regulations for rare earth exports in an earlier post on Friday, accusing China of “becoming very hostile” and attempting to keep the world “captive. He threatened to cancel a meeting with President Xi Jinping of China. He then claimed that he was unaware “that we’re going to have it” but that he had not canceled it.
Following Trump’s comments, financial markets plummeted; the S&P 500 closed 2.7% lower, the largest decline since April. Rare earths and other essential materials, which are used in automobiles, smartphones, and numerous other products, are primarily produced in China.
Many US companies that depend on the minerals protested when Beijing last tightened export limits, after Trump’s increase in tariffs on Chinese exports earlier this year. Ford even had to put a temporary stop to manufacturing. China has tightened regulations for exporting rare earth elements and launched a monopolistic probe against Qualcomm, a US tech company that may delay the purchase of another chipmaker.
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