By Luzinda Peter

Former President Donald Trump has threatened to re?ignite a trade war with China, vowing “massive” new tariffs after Beijing announced export restrictions on rare earth materials used in critical technologies.

In a post on Truth Social, Trump called China’s move “sinister,” accusing Beijing of catching world leaders off guard by restricting exports of magnets and other industrial inputs. He also floated canceling a planned meeting with President Xi Jinping at the forthcoming APEC summit.

China’s newly issued export controls cover rare earth elements and technologies tied to semiconductor manufacturing, magnet production, and recycling. The policy demands special approvals for shipments—even those processed abroad but containing Chinese-origin rare earths.

White House officials say key countermeasures are under review. Among them: tariff hikes, expanded export restrictions, and increased investment in domestic rare earth production to reduce U.S. dependence on Chinese supply chains. Trump’s reaction marks a sharp escalation in the U.S.–China trade conflict, coming on the heels of existing tariffs averaging over 50% on many Chinese goods. He argues that China’s move undermines global markets and that the U.S. has greater leverage in this standoff. 

In response, China’s Commerce Ministry denounced the threatened tariffs as “bullying” and pledged to defend Beijing’s sovereignty. Officials warned of forceful countermeasures should the U.S. proceed.

Analysts suggest markets could face turbulence if both sides escalate. The rare earth controls alone threaten major disruptions in industries such as electronics, defense, and electric vehicles— where China currently dominates processing and supply.

As tensions mount, eyes turn to whether the APEC meeting will proceed and how both nations will move next. For now, the trade dispute stands at a tipping point, with global economic ripple effects potentially looming.