U.S. President Donald Trump announced Friday that he may impose a “massive” increase in tariffs on Chinese goods and cancel his upcoming meeting with Chinese President Xi Jinping, escalating tensions between the world’s two largest economies.
*TRUMP: US WILL IMPOSE 100% TARIFF ON CHINA STARTING NOV 1
Welcome back to the trade war. pic.twitter.com/clooxnR8zc
— Geiger Capital (@Geiger_Capital) October 10, 2025
The move follows China’s expansion of export controls on rare earth elements, which are critical to global technology and manufacturing industries. Beijing’s decision added five new elements and dozens of refining technologies to its control list, tightening its grip on materials used in electronics, defense, and renewable energy.
In a post on Truth Social, President Trump accused China of attempting to “hold the global economy hostage” and warned that the United States would “financially counter” Beijing’s actions. “For every element they have monopolized, we have two,” Trump said, adding that there was now “no reason” to meet Xi at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea.
The unexpected announcement rattled global markets, with the S&P 500 Index dropping 2% on fears of a renewed trade confrontation. The U.S. Trade Representative’s Office declined to comment on potential countermeasures, while the U.S. Treasury Department did not immediately respond.
China currently produces more than 90% of the world’s processed rare earths, making its latest restrictions a significant challenge for global supply chains. Beijing has not confirmed any planned meeting with Trump and continues to call on Washington to lift its unilateral trade barriers.
This development marks the sharpest deterioration in U.S.-China relations in months, raising fresh uncertainty over the future of global trade cooperation.
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