U.S. Escalates Trade Threats Against China Amidst Growing Tensions
U.S. President Donald Trump has threatened to impose 100 percent tariffs on Chinese goods starting November 1, following China’s announcement of export restrictions on rare earth materials. The escalating rhetoric has instigated a sell-off in global financial markets, heightening fears of a renewed trade conflict between the world’s largest economies, reports 24brussels.
Trump’s announcement came as U.S. Treasury Secretary Bessent indicated that he anticipates discussions in Asia with Chinese Vice Premier He Lifeng prior to the anticipated Trump-Xi meeting in South Korea. Bessent emphasized that while the overall U.S.-China relationship remains in “good” standing, he insisted that China must retract its plans to limit the export of rare earth magnets.
Bessent further suggested that a lower-level official in China may have made the decision to impose these restrictions, rather than President Xi Jinping personally. He stated, “This is China versus the world. They have pointed a bazooka at the supply chains and the industrial base of the entire free world, and we’re not going to have it. A group of bureaucrats in China cannot tell us and our allies how to run our supply system.”
He noted that the U.S. seeks substantial support from Europe, India, and other democracies in Asia in response to China’s actions. “I believe that China is open to discussion on this. And if they’re not, we have substantial levers on our own … side that we can pull,” he added.
In the face of emerging tensions earlier this year, the United States implemented 12 countermeasures against China, deemed “highly” effective, affecting various sectors from natural resources used in plastic production to advanced aerospace components. Bessent also hinted at potential measures that could include expelling the significant number of Chinese students currently in the U.S. and additional actions in technology, minerals, and financial services if China does not relent. “We have plenty of straight, brute-force countermeasures that we can pull,” he stated.
The situation remains fluid as both nations navigate these complex trade dynamics, raising the stakes for international markets and geopolitical relations.
