Washington
\nUS President Donald Trump has said he would impose an additional 100% tariff on imports from China from next month. In a post on social media, Trump said the US would also put export controls on critical software.
\nIn an earlier post on Friday, he hit back at Beijing\u2019s move this week to tighten its rules for exports of rare earths, accusing China of \u201cbecoming very hostile\u201d and trying to hold the world \u201ccaptive\u201d.
\nHe threatened to pull out of a meeting with China\u2019s President Xi Jinping. He later said he had not cancelled it, but that he did not know \u201cthat we\u2019re going to have it\u201d.
\n\u201cI\u2019m going to be there regardless,\u201d he told reporters at the White House.
\nFinancial markets dropped in the wake of Trump\u2019s remarks, with the S&P 500 closing down 2.7%, its steepest fall since April.
\nChina dominates production of rare earths and certain other key materials, which are key components in cars, smartphones and many other items.
\nThe last time Beijing tightened export controls – after Trump raised tariffs on Chinese goods early this year – there was an outcry from many US firms reliant on the materials. Carmaker Ford even had to temporarily pause production.
\nIn addition to tightening rules for rare earth exports, China has opened a monopoly investigation into the US tech firm Qualcomm that could stall its acquisition of another chipmaker.
\nAlthough Qualcomm is based in the US, a significant portion of its business is concentrated in China. Beijing has also said it will charge new port fees to ships with ties to the US, including those owned or operated by US firms.
\n\u201cSome very strange things are happening in China!\u201d Trump wrote in a post on social media on Friday. \u201cThey are becoming very hostile.\u201d
\nThe US and China have been in a fragile trade d\u00e9tente since May, when the two sides agreed to drop triple-digit tariffs on each others\u2019 goods that had nearly stopped trade between the two countries.
\nThe move left US tariffs on Chinese goods facing an added 30% levy compared with the start of the year, while US goods entering China face a new 10% tariff.
\nOfficials have held a series of talks since then on matters including TikTok, agricultural purchases, and the trade of rare earths and advanced technology like semiconductors. The two sides were expected to meet again this month at a summit in South Korea.
\nChina expert Jonathan Czin, a fellow at the Brookings Institution, said Xi\u2019s recent actions were a bid to shape the upcoming talks, noting that the recent rare earths directive does not go into effect immediately.
\n\u201cHe\u2019s looking for ways to seize the initiative,\u201d he said. \u201cThe Trump administration is having to play a game of whack-a-mole and deal with these issues as they come up.\u201d
\nHe added that he did not think China was worried about US retaliation in response.
\n\u201cWhat China took away from the Liberation Day tariffs and the cycle of escalation followed by de-escalation is that the Chinese side had a higher pain threshold,\u201d he said. \u201cFrom their perspective, the Trump administration blinked.\u201d
\nIn prior rounds of trade talks, China has pushed for looser US restrictions on semiconductors. It is also interested in securing more stable tariff policies that would make it easier for its businesses to sell into the US.
\nXi had previously used as leverage his country\u2019s dominance of rare earths production.
\nBut the export rules unveiled this week target overseas defence manufacturers, making them particularly serious, said Gracelin Baskaran, director of the critical minerals security program at Washington-based Center for Strategic and International Studies.
\n\u201cNothing makes America move like targeting our defence industry,\u201d she said. \u201cThe US is going to have to negotiate because we have limited options, and in an era of rising geopolitical tension and potential conflict, we need to build our industrial defence base.\u201d
\nWhile a Trump-Xi meeting now looks unlikely, she said it was not necessarily completely off the table. Ms Baskaran said there\u2019s still time and room for talks. China\u2019s new rules don\u2019t take effect until December.
\n\u201cNegotiations are likely imminent,\u201d she said. \u201cWho does them and where they happen will be determined with time.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Washington US President Donald Trump has said he would impose an additional 100% tariff on imports from China from next month. In a post on social media, Trump said the US would also put export controls on critical software. In an earlier post on Friday, he hit back at Beijing\u2019s move this week to tighten […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-508146","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n