President Donald Trump has condemned China’s recent trade actions, accusing the nation of adopting a “hostile” approach that threatens global markets. In a TruthSocial post, Trump claimed China is attempting to monopolize critical resources, including rare earth elements, and warned of impending tariffs on Chinese goods.
The president stated that China’s new export controls, which require foreign companies to seek approval for products containing even minimal traces of rare earths sourced from China, represent an unprecedented move. He argued that these measures would “clog” global markets and harm nations worldwide, despite China’s long-standing dominance in the sector. Trump emphasized that the U.S. possesses stronger monopoly positions but has previously avoided leveraging them—until now.
Trump also revealed that his planned meeting with Chinese President Xi Jinping at the APEC summit in South Korea has been called into question. The president cited the timing of China’s actions, which coincided with recent Middle East peace efforts, as particularly “inappropriate.” He hinted at potential retaliatory measures, including a “massive increase” in tariffs on Chinese imports, while acknowledging the economic risks involved.
The post triggered immediate market volatility, with U.S. stock indices plunging after trading earlier in positive territory. The S&P 500 fell over 1% and the Nasdaq dropped nearly 2% as investors reacted to the escalating trade tensions. China’s new regulations, which focus on rare earths and related technologies, have intensified scrutiny of Beijing’s economic strategies.
Trump’s comments mark a sharp escalation in U.S.-China trade disputes, despite earlier negotiations suggesting progress on issues like rare earth exports and TikTok. The president’s latest statements underscore a shift toward confrontational tactics, leaving global markets uncertain about the future of bilateral relations.