Trump Threatens ‘Massive’ New Tariffs On China And Hints Xi Summit May Be Off

President Donald Trump on Friday threatened to impose new tariffs on China and suggested canceling an upcoming summit with Chinese President Xi Jinping. In a post on Truth Social, Trump said Beijing’s decision to restrict exports of rare earth magnets and materials could force the United States to escalate its trade response. As reported by Politico, Trump wrote that a meeting with Xi planned for later this month at the APEC summit in South Korea may no longer be necessary.

Trump accused China of attempting to use its control over rare earth elements to pressure global markets. He described the move as an unprecedented form of “trade hostility” that would harm multiple countries. The United States currently imposes tariffs averaging about 55 percent on Chinese goods, including levies connected to fentanyl trafficking concerns and those carried over from Trump’s first term.

Trump’s latest remarks suggest the limited truce between Washington and Beijing may be unraveling. Analysts said China’s decision to expand its export controls was likely intended as leverage but instead provoked sharp criticism from the United States. Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, said that “what Beijing sees as leverage, Washington views as betrayal.” He added that both sides now appear ready to deploy economic measures without backing down.

Fragile Trade Truce Shows Signs Of Collapse

The Chinese Embassy did not immediately respond to requests for comment. Trump, however, insisted the United States holds its own advantages in certain markets, warning Beijing against exercising monopoly control over rare earth exports. Rare earth magnets are used in high-tech products, renewable energy equipment, and medical technologies, making them a key point of contention in global trade.

Trade between the two nations has already declined significantly. According to U.S. trade data cited, imports from China totaled $194 billion in the first seven months of 2025, down from $239 billion during the same period in 2024. U.S. exports to China also fell, dropping from $82 billion in the first seven months of 2024 to $65 billion this year. Agricultural exports, especially soybeans, have been particularly affected, prompting discussions within the administration about providing subsidies to American farmers.

The uncertainty over tariffs and the possible cancellation of the Xi-Trump meeting raises questions about the future of U.S.-China trade relations.