Chicago – October 15, 2025
President Donald Trump expressed shock at China’s “surprising” move to unleash sweeping export controls on rare earths, accusing the country of “becoming very hostile.”
But according to Beijing, it was Washington’s expansion of curbs on Chinese firms that ratcheted up tensions and drove it to further tighten its grip on the critical minerals essential in the production of a wide range of electronics, automobiles and semiconductors.
In a rapid escalation of friction over the weekend, Trump said he would restore tariffs on China to triple-digit levels due to Beijing’s new controls, prompting the Chinese government to vow “corresponding measures.”
The moves between the world’s two largest economies have rattled markets, unnerved global industries of production shocks, and rekindled fears of a repeat of the tit-for-tat tariff offense in spring, when levies on Chinese and American imports reached levels tantamount to trade embargoes.
The renewed tensions also risk derailing the progress made during months of trade negotiations and raised questions about whether a planned meeting between Chinese leader Xi Jinping and Trump in South Korea at the end of the month will still take place.
After Trump suggested that he might call off the meeting, Treasury Secretary Scott Bessent told Fox News Monday he still expected it to happen.
China’s commerce ministry said Tuesday it remained open to talks, while reiterating that the US cannot seek dialogue while threatening new measures.
