China Defends rare earth 🌎 controls as Trump threatens 100% tariff

 China has doubled down on its defense of new rare earth export controls, calling them "legitimate" measures to protect national security, as trade tensions escalate sharply with the United States following President Donald Trump's threat of additional 100% tariffs. The confrontation, which erupted after Beijing announced sweeping new restrictions on October 9, has cast doubt over a planned meeting between Trump and Chinese President Xi Jinping later this month.

Beijing Justifies Export Controls Amid US Backlash:-

China's Ministry of Commerce on Sunday defended its expanded rare earth restrictions as necessary actions taken "in accordance with laws and regulations to refine its export control system". The ministry emphasized that the controls were implemented to "better defend world peace and regional stability" in response to "frequent military conflicts" globally.[1][2][3]

The new measures, which take effect December 1, extend China's control beyond the rare earth elements themselves to include manufacturing technologies, processing equipment, and downstream products. Foreign companies must now obtain Chinese government approval to export items containing even trace amounts of Chinese rare earths—as little as 0.1%—or products made using Chinese technologies.[4][5][6]

"China's export controls are not export bans. Licenses will be granted for eligible applications," the commerce ministry stated, while noting that military-related applications would face automatic rejection.[2][7]

Citations:

[1] China defends rare earth export curbs as ‘legitimate,' hits back at U.S. tariffs ahead of possible Trump-Xi meeting https://www.cnbc.com/2025/10/12/china-defends-rare-earth-export-curbs-as-legitimate-hits-back-at-us-tariffs-ahead-of-possible-trump-xi-meeting.html

[2] Full text: MOFCOM on China's export controls, other trade policies https://news.cgtn.com/news/2025-10-12/Full-text-MOFCOM-on-China-s-export-controls-other-trade-policies-1Hp66E3ZIY0/p.html

[3] China defends rare earth export controls, urges US to manage differences through dialogue https://global.chinadaily.com.cn/a/202510/12/WS68eb16c3a310f735438b479b.html

[4] In Retaliatory Move, Trump Threatens 100% Tariffs on Chinese Goods https://www.nytimes.com/2025/10/10/us/politics/trump-xi-china-tariffs-rare-earth.html

[5] How China's new rare earth export controls work https://www.reuters.com/world/china/how-chinas-new-rare-earth-export-controls-work-2025-10-10/

[6] Ministry of Commerce Notice 2025 No. 61 - CSET https://cset.georgetown.edu/publication/mofcom-notice-2025-61/

[7] China’s New Rare Earth and Magnet Restrictions Threaten U.S. Defense Supply Chains https://www.csis.org/analysis/chinas-new-rare-earth-and-magnet-restrictions-threaten-us-defense-supply-chain

Trump Threatens Massive Tariff Escalation

President Trump responded swiftly to China's actions, announcing Friday that the US would impose an additional 100% tariff on Chinese goods starting November 1, "over and above any tariff they are currently paying". The move would layer onto existing tariffs that already average around 30% on Chinese imports.[1][2][3][4]

Trump called China's restrictions "shocking" and "very hostile," accusing Beijing of attempting to hold the world "captive" through its rare earth dominance. On Truth Social, he declared there was "now no reason" to meet with Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in South Korea, though he later hedged, saying he hadn't officially canceled.[3][5][6][1]

The announcement triggered market volatility, with the S&P 500 falling 2.7% on Friday, its steepest decline since April. Analysts warned the escalation could revive the damaging trade war that had briefly eased following negotiations earlier this year.[4][7][8][3]

Citations:

[1] In Retaliatory Move, Trump Threatens 100% Tariffs on Chinese Goods https://www.nytimes.com/2025/10/10/us/politics/trump-xi-china-tariffs-rare-earth.html

[2] Trump puts extra 100% tariff on China imports, adds export controls on 'critical software' https://www.cnbc.com/2025/10/10/trump-trade-tariffs-china-software.html

[3] Trump ratchets up US-China trade war, promising new tariffs https://www.reuters.com/world/china/trump-says-weighing-massive-increase-tariffs-chinese-imports-no-reason-meet-with-2025-10-10/

[4] Trump threatens tech export limits, new 100% tariff on Chinese imports https://www.npr.org/2025/10/11/g-s1-93113/trump-threatens-100-tariff-chinese-imports

[5] What are rare earth minerals, and why are they central to Trump’s threats against China? https://www.cnn.com/2025/10/11/business/rare-earth-minerals-trump-china-xi

[6] Trump says he’ll impose new 100% tariff on China ‘over and above’ current rates, massively escalating trade war https://www.cnn.com/2025/10/10/politics/rare-earths-china-trump-threats

[7] Trump threatens to impose additional 100% tariff on China https://www.bbc.com/news/articles/cn4wkd7729po

[8] Are US-China ties heading for the rocks after Trump’s latest tariff threat? https://www.scmp.com/economy/china-economy/article/3328643/are-us-china-relations-headed-rocks-again-after-trumps-latesTrump Threatens Massive Tariff Escalation

President Trump responded swiftly to China's actions, announcing Friday that the US would impose an additional 100% tariff on Chinese goods starting November 1, "over and above any tariff they are currently paying". The move would layer onto existing tariffs that already average around 30% on Chinese imports.[1][2][3][4]

Trump called China's restrictions "shocking" and "very hostile," accusing Beijing of attempting to hold the world "captive" through its rare earth dominance. On Truth Social, he declared there was "now no reason" to meet with Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in South Korea, though he later hedged, saying he hadn't officially canceled.[3][5][6][1]

The announcement triggered market volatility, with the S&P 500 falling 2.7% on Friday, its steepest decline since April. Analysts warned the escalation could revive the damaging trade war that had briefly eased following negotiations earlier this year.[4][7][8][3]

Citations:

[1] In Retaliatory Move, Trump Threatens 100% Tariffs on Chinese Goods

 https://www.nytimes.com/2025/10/10/us/politics/trump-xi-china-tariffs-rare-earth.html

[2] Trump puts extra 100% tariff on China imports, adds export controls on 'critical software' https://www.cnbc.com/2025/10/10/trump-trade-tariffs-china-software.html

[3] Trump ratchets up US-China trade war, promising new tariffs https://www.reuters.com/world/china/trump-says-weighing-massive-increase-tariffs-chinese-imports-no-reason-meet-with-2025-10-10/

[4] Trump threatens tech export limits, new 100% tariff on Chinese imports https://www.npr.org/2025/10/11/g-s1-93113/trump-threatens-100-tariff-chinese-imports

[5] What are rare earth minerals, and why are they central to Trump’s threats against China? https://www.cnn.com/2025/10/11/business/rare-earth-minerals-trump-china-xi

[6] Trump says he’ll impose new 100% tariff on China ‘over and above’ current rates, massively escalating trade war https://www.cnn.com/2025/10/10/politics/rare-earths-china-trump-threats

[7] Trump threatens to impose additional 100% tariff on China https://www.bbc.com/news/articles/cn4wkd7729po

[8] Are US-China ties heading for the rocks after Trump’s latest tariff threat? https://www.scmp.com/economy/china-economy/article/3328643/are-us-china-relations-headed-rocks-again-after-trumps-latest-tariff-threat

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