Trump weighing 'massive increase' in tariffs on Chinese imports, says no reason to meet Xi

United States President Donald Trump on Friday (Oct 10) said there was no reason to meet with China's President Xi Jinping in two weeks in South Korea as planned, adding in a Truth Social post that the US is calculating a massive increase in tariffs on Chinese imports.

Trump said China has been sending letters to countries worldwide saying it planned to impose export controls on every element of production related to rare earths.

The 17 rare earth elements are vital materials in products ranging from electric vehicles to aircraft engines and military radars.

On Thursday, China announced that it was adding five new elements to those subject to restrictions. It also limited the export of dozens of pieces of equipment and material used to mine and refine rare earths.

Its move would force exporters to apply for licenses. 

Beijing also said for the first time that it intends to apply its regime to foreign producers who make certain rare earth products using Chinese material or equipment.

"Nobody has ever seen anything like this but, essentially, it would 'clog' the Markets, and make life difficult for virtually every Country in the World, especially for China," he said in the Truth Social post.

"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. 

"I have always felt that they’ve been lying in wait, and now, as usual, I have been proven right!" he wrote.

The US president added that he had not spoken to his Chinese counterpart because there was no reason to do so.

"This was a real surprise, not only to me, but to all the Leaders of the Free World," he said.

"I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so. 

"The Chinese letters were especially inappropriate in that this was the Day that, after three thousand years of bedlam and fighting, there is PEACE IN THE MIDDLE EAST."

Trump added that a "massive" increase on tariffs on Chinese exports was one consideration, with other countermeasures also being considered.

"One of the policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America. There are many other countermeasures that are, likewise, under serious consideration."

China produces over 90 per cent of the world’s processed rare earths and rare earth magnets and has used export restrictions to throttle shipments.

The country had said it would facilitate licence approvals, but intended to reject applications related to defence and would closely scrutinise those related to advanced semiconductors and certain kinds of artificial intelligence.