Washington: US President Donald Trump has announced plans to impose an additional 100% tariff on imports from China starting next month. This move is seen as a response to China’s recent tightening of its rare earth export regulations, which Trump criticized as an attempt to hold the world “captive.”
According to BBC, in addition to the proposed tariffs, Trump revealed plans to implement export controls on critical software. This announcement follows China’s recent actions to strengthen its grip on rare earths, key materials essential for producing various high-tech items like cars and smartphones. China’s dominance in the production of these materials has already caused disruptions for US companies reliant on them, as seen when carmaker Ford temporarily halted production due to earlier trade tensions.
China’s latest measures also include launching a monopoly investigation into US tech firm Qualcomm, potentially affecting its acquisition of another chipmaker. Furthermore, China plans to impose new port fees on ships with US ties, escalating the economic standoff. These developments come amid a fragile trade détente between the US and China, which began in May when both nations agreed to reduce tariffs that had severely impacted bilateral trade.
Jonathan Czin, a China expert at the Brookings Institution, interprets China’s aggressive actions as a tactic to influence upcoming trade discussions. He emphasizes that the recent rare earth export directive has not yet taken effect, suggesting China seeks to control the narrative in the talks. Gracelin Baskaran of the Center for Strategic and International Studies highlights the seriousness of China’s export rules, particularly concerning the US defense industry, which could compel the US to negotiate due to limited options in a tense geopolitical landscape.
While a meeting between Trump and Chinese President Xi Jinping appears unlikely at this stage, experts like Baskaran suggest negotiations could still occur before China’s new rules take effect in December. The evolving situation underscores the complexity and high stakes involved in US-China trade relations.