Washington: US President Donald Trump On Friday, stepped up his attacks on China, saying that Beijing’s limits on rare earth shipments were a “sinister move” and warning that taxes on Chinese imports will go up by a “massive” amount.
Trump told reporters at the White House that China’s recent moves have become “very hostile.” He also added that the US will think about taking serious financial steps to protect its economic interests.
“China has been really unfriendly lately. “We’re seeing things that aren’t okay—like their rare earth export control, which is a bad move,” Trump added. “We will respond very strongly, maybe by raising tariffs on Chinese goods by a lot,” he said.
The statements come at a time when trade tensions between the US and China are rising again. This is because Beijing has decided to make it harder to export rare earth materials, which are used to make electronics, defense equipment, and electric cars.
Trump also said that he had planned to meet with Chinese President Xi Jinping in two weeks, but that arrangement now seems unclear. He stated, “There doesn’t seem to be any reason to do so now,” which suggests that the US government is reconsidering how it interacts with Beijing diplomatically.
The President of the United States said that recent Chinese messages were “especially inappropriate” and that the US would respond economically if China keeps up its severe measures.
Analysts think that Trump’s comments could be a turning moment in the trade relationship between the two biggest countries in the world. If diplomatic talks don’t start up again, this could lead to a fresh round of tariffs and sanctions.
The rare earth disagreement comes at a bad time for the US, which wants to rely less on Chinese supply chains, especially for high-tech and crucial commodities. China makes around 70% of the world’s rare earths right now, which gives it a lot of power in world markets.