Trump Strikes a Fierce Tone as US-China Trade Tensions Resurface

The fragile calm between Washington and Beijing has shattered once again as both powers escalate a renewed trade war centered on rare earth minerals, tariffs, and control of critical supply chains. China’s latest move to expand export restrictions on rare earths and related technologies has ignited sharp retaliation from the United States, heightening fears of another global economic shock.

Beijing’s new measures, announced earlier this month, tighten control over minerals vital for semiconductors, defense systems, and electric vehicles, areas where China dominates global supply. The Ministry of Commerce defended the move as necessary for national security, accusing the U.S. of hypocrisy for its own technology bans. Washington, however, views the action as economic coercion. President Donald Trump threatened 100% tariffs on all Chinese imports, calling the decision “an act of economic aggression.” Treasury Secretary Scott Bessent warned that the world would decouple from China if it continued using resources as political leverage.

The dispute has quickly spilled into the shipping sector, with both sides introducing reciprocal port fees on each other’s vessels. The Federal Reserve’s Governor Miran described the renewed hostilities as a material risk to global growth, while U.S. Trade Representative Jamieson Greer accused Beijing of trying to monopolize technology supply chains.

Despite the fiery rhetoric, China signaled it remains open to talks, accusing Washington of deliberately creating panic and exaggerating its measures. Analysts note that Beijing’s careful messaging combining patriotism with calls for cooperation reflects its struggle to balance domestic nationalism with economic pragmatism.

A potential meeting between President Trump and President Xi Jinping at the APEC summit later this month could decide the direction of this standoff. For now, both sides are standing firm, with rare earths emerging as the new battleground in a conflict that could reshape global trade and technological dominance.