According to Trump, new tariffs will take effect on November 1 and will be added to the existing tariffs, which in some cases exceed 30%. The US also plans to impose export restrictions on important software.
Earlier that same day, the president expressed a threat of retaliatory measures and a cancellation of the planned meeting with Chinese leader Xi Jinping. He characterized the restrictions on rare earth minerals as "hostile and sinister," noting that they would complicate life for many countries around the world. Trump was scheduled to meet with Xi in two weeks at an international economic conference in South Korea, but now sees no point in that meeting.
The Trump administration has made efforts to force China to make concessions by imposing its own restrictions on the export of software necessary for chip design and other critical goods. Tariffs on Chinese goods in the US have already reached 145%, creating serious problems in trade relations between the countries and raising concerns about shortages of goods in American stores.
“We are considering a significant increase in tariffs on Chinese products coming to the US,” Trump noted. “There are also other measures under consideration.”
Markets reacted negatively to this news: the S&P 500 index fell by more than 2%. That same evening, Trump stated that tariffs could be revised before November 1 and that he does not rule out the possibility of meeting with Xi Jinping. “We’ll see how the situation develops,” he added, emphasizing that China’s actions are “very bad.”
Rare earth minerals, necessary for the production of engines, brakes, and semiconductors, have been a source of tension between the US and China this year. Although Trump previously imposed high tariffs on Chinese exports, he also lifted them when they hindered trade and negatively affected companies in both countries.
In response to the high tariffs imposed by Trump, China restricted the export of minerals for American automotive and defense manufacturers in April, threatening to shut down American factories. This forced the US to back down, and the parties reached a temporary agreement that allowed Trump to reduce tariffs and China to increase mineral exports.
Recently, China tightened control, extending its requirements to global semiconductor production and other technologies. Companies now need a license to export products with minimal content of Chinese rare earth elements, including chips. Licenses will also be required if the minerals are extracted or processed using Chinese technologies.
Companies associated with foreign militaries will not be able to obtain these licenses. Additionally, China has introduced new restrictions on equipment necessary for the production of batteries for electric vehicles.
Source: https://www.nytimes.com/2025/10/10/us/politics/trump-xi-china-tariffs-rare-earth.html
