Trade relations between the USA and China had recently calmed down – now the trade dispute is escalating again: Due to disputes over rare earths, US President Trump announced additional tariffs on all Chinese goods.
US President Donald Trump has announced additional tariffs of 100 percent on imports from China to the US. These would be collected from November 1st – or earlier depending on China’s further actions – the Republican wrote on his Truth Social platform. He justified the project with China’s current trade policy and called China’s behavior “extraordinarily aggressive.”
It was not clear from Trump’s announcement whether the tariffs now announced are a further increase to those already announced in the spring or how they relate to them. In his post, Trump also announced export controls for all important software from November 1st. He did not give any further details. The so-called export controls are mostly export bans that the government can lift in individual cases. This allows a country to influence which products end up in other countries.
China had previously said that exports of rare earth technologies would now be more strictly controlled. From now on, companies needed approval from the authorities if they exported machines and technologies for mining and processing materials from China. Additional restrictions should apply to foreign companies.
Trump questions meeting with Xi
Just hours before his announcement, Trump had also questioned his planned meeting with Chinese President Xi Jinping in South Korea, citing the ongoing trade conflict. He was supposed to meet Xi at the Asia-Pacific Economic Cooperation (APEC) summit at the end of October – “but now there seems to be no reason for it,” the Republican wrote on Truth Social on Friday.
Trump cited the announced export restrictions for rare earths and other materials as his reason. This “came out of nowhere” and could paralyze world trade and harm many countries. The People’s Republic is becoming increasingly “hostile,” said Trump.
Pause in the trade dispute
There is currently a pause in the trade dispute between China and the USA, which escalated in the spring. In April, both countries imposed surcharges of more than 100 percent on imports from the other country. It was not clear from Trump’s announcement whether the tariffs now announced are a further increase to those already announced in the spring or how they relate to them. In his post, Trump also announced export controls for all important software from November 1st. He did not give any further details.
The so-called rare earths are extremely important for electronics from smartphones to televisions as well as in car production and the defense industry. China plays a central role in the global supply of minerals.
