Trump Escalates Trade War with New Tariff Threats on All Chinese Imports, Citing Rare Earths
President Trump threatened tariffs on all Chinese imports, potentially over 100%, due to rare earth restrictions. China condemned the move, citing damaged trade talks.
What to Know as U.S. and China Reignite Trade Spat
TIME Magazine
Trump brushes off trade tensions with China: 'It will all be fine!'
Washington Examiner
Overview
- China currently dominates the global rare earths market, accounting for nearly 70% of mining and approximately 90% of processing worldwide, a key factor in trade tensions.
- President Trump, reversing earlier softer rhetoric, issued new tariff threats on all Chinese imports, potentially raising them over 100%, in response to China's stricter rare earth restrictions.
- China's Ministry of Commerce accused the U.S. of severely damaging trade negotiations with these new threats and called for their immediate withdrawal to restore stability.
- Chinese trade data revealed a significant 27% drop in exports to the U.S. over six consecutive months, highlighting the economic impact of existing trade disputes.
- This substantial decline in exports further prompted China to reiterate its demand for the U.S. to withdraw all tariff threats to facilitate productive trade discussions.
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Analysis
Center-leaning sources cover the escalating trade dispute between the U.S. and China neutrally. They present a balanced account of both nations' actions and official statements, using objective language to describe the back-and-forth over tariffs and rare earths. The reporting focuses on factual developments and attributed claims, avoiding editorial bias in its collective presentation.
"China did not back down Monday in a back-and-forth with the U.S. over trade, calling for U.S. President Donald Trump to withdraw his latest threat of a 100% tariff and other export control measures announced over the weekend."
ABC News"China urges the U.S. to promptly correct its erroneous practices."
Associated Press"China’s stance is consistent, stating that it does not want a tariff war but is not afraid of one."
Chicago TribuneArticles (7)
Center (3)
FAQ
Rare earths are a group of 17 chemical elements critical in manufacturing electronics, defense, and technology products. China dominates their mining and processing globally, controlling nearly 70% of mining and 90% of processing, making them a strategic leverage point in trade negotiations and tensions.
In 2025, President Trump announced an additional 100% tariff on all Chinese imports, to be layered on top of existing duties, potentially raising rates above 100%. This move was a response to China's rare earth export restrictions and included new export controls on critical US-made software.
China condemned the US’s new tariff threats, accusing the US of severely damaging trade negotiations and calling for their immediate withdrawal to restore stability. China also implemented retaliatory measures such as additional port fees on US vessels and trade restrictions, further escalating tensions.
China's exports to the US have declined significantly, with a reported 27% drop over six consecutive months, illustrating the economic strain imposed by ongoing trade disputes and tariff escalations between the two countries.
The tariff escalation has cast doubt on planned meetings, such as the potential Trump-Xi Jinping meeting at the APEC summit, as heightened tensions complicate ongoing trade talks and increase economic uncertainty, potentially undermining diplomatic efforts for resolution.
History
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