US-China Trade Tensions Escalate
New Tariffs and Export Controls Announced, US President Donald Trump announced yesterday that the United States will impose new 100% tariffs on imports from China, in addition to any existing tariffs. He also stated that the US will implement export controls on all critical software.
This announcement comes in retaliation to China's new controls on the export of rare earth minerals from its territory. The Chinese Ministry of Commerce stated that as of December 1, 2025, foreign entities will require a license to export products containing more than 0.1% of rare earth minerals from China, or manufactured using Chinese extraction, refining, magnet manufacturing, or recycling technologies.
Approximately 70% of the world's rare earth mineral supply comes from the Asian giant. These minerals are essential to high-tech industries, including the automotive, defense, and semiconductor sectors.
Trump Threatens to Cancel Meeting with Chinese President
Trump went further, hinting that he may cancel a scheduled meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in South Korea, due to the new controls.
Markets Expected to React
Markets are expected to be concerned again when they open on Monday morning, with Asian financial markets likely to be affected earlier. US indices closed lower yesterday, and the hopes of a US-China trade deal have taken a hit. The price of American crude oil also fell, as investors fear that the increased tariffs will weigh on global demand.
The situation is ongoing, and further developments are expected to be announced in the coming days.
