China responded to President Donald Trump‘s announcement of additional tariffs on Chinese goods by defending its own export controls on rare earth elements.
China Calls Trump Tariffs On Chinese Goods Hypocritical
China has labeled Trump’s recent tariffs on Chinese goods as hypocritical, while defending its own restrictions on rare earth exports, according to a Reuters report. This was in response to President Trump’s announcement of an additional 100% tariffs on Chinese exports to the U.S.
"The U.S. actions have severely harmed China's interests and undermined the atmosphere of bilateral economic and trade talks, and China is resolutely opposed to them," the ministry said, according to the report.
Trump’s tariffs were a reaction to China’s export controls on rare earth elements, which are crucial for various industries.
Wall Street Unsettled
These developments have unsettled Wall Street and raised concerns among foreign companies reliant on China’s rare earth production. The tensions have also led to President Trump cancelling his upcoming meeting with his Chinese counterpart, President Xi Jinping, which was initially set to happen later in October.
"Our relationship with China over the past six months has been a very good one, thereby making this move on Trade an even more surprising one," Trump said in a post on Truth Social.
The Chinese commerce ministry’s statement was a direct reply to Trump’s comments on Truth Social, where he accused China of escalating trade tensions unexpectedly.
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No Tariffs On US Goods, For Now
Despite the tensions, China has not imposed new levies on U.S. imports, leaving room for potential negotiations.
"China’s export controls are not export bans. Any export applications for civilian use that comply with regulations will be approved, and relevant enterprises need not worry," the ministry added.
Rare Earth Stocks Spike
On Friday, rare earth stocks surged following Trump’s aggressive stance on China’s export controls. This move highlights the critical role rare earth elements play in various industries, including technology and defense.
Moreover, Trump’s tariff threats have already impacted U.S. markets. On the same day, major U.S. indices experienced significant declines, with the Nasdaq Composite falling 3.6%, the S&P 500 dropping 2.7%, and the Dow Jones Industrial Average also ending in the red.
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