U.S. President Trump said they are considering a significant increase in tariffs on Chinese products due to restrictions China has imposed on the export of rare earth elements.
On Friday, Trump delivered a strong message to Beijing, threatening to raise tariffs on China and cancel his planned meeting with President Xi Jinping.
Saying that “very strange things” are happening in China, Trump accused the country of becoming “hostile” and sending letters to nations around the world, stating that it intends to impose export restrictions on nearly every aspect of production related to rare earth elements — and even on products that aren’t made in China. He warned that this move would “clog the markets” and make life difficult for almost every country globally, especially for China itself.
Trump said other countries, angered by this ‘major act of trade hostility,’ have reached out to him, describing the situation as something that “emerged suddenly.”
“Our relations with China had been going very well over the past six months, which makes this trade move all the more surprising,” Trump said. “I’ve always felt they were lying in wait, and as usual, I’ve been proven right.”
Emphasizing that the world cannot allow China to hold it hostage, Trump said this plan appears to have been in the making for some time — starting with magnets and other elements where China has gained a monopoly-like position.
He added that the U.S. holds much stronger and broader monopolistic positions than China, but has so far chosen not to use them.
Trump said he has not spoken with President Xi, as he sees “no reason to,” adding: “This came as a real surprise not just to me, but to all leaders of the free world. I was supposed to meet President Xi in two weeks at the APEC summit in South Korea, but now there seems to be no reason for that.”
Trump also noted that China’s letters came at an inconvenient time — just as peace was being achieved in the Middle East — and wondered whether the timing was a coincidence.
Depending on what China says about its newly issued ‘hostile decision,’ Trump said the U.S. may have to respond financially, adding:
“For every element they can monopolize, we have two. I never thought it would come to this, but perhaps, as with everything, the time has come. Ultimately, though it may be painful, it will be a very good thing for the United States. One of the policies we are currently considering is a major increase in tariffs on Chinese goods entering the U.S. Likewise, there are several other countermeasures under serious consideration.”
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