US President Donald Trump has claimed that China plans to restrict exports of rare earth elements and other production inputs, and announced that he is considering raising tariffs on Chinese goods in response to this development.
In a post on Truth Social, President Trump said: “Something very strange is happening in China! China has taken a very aggressive stance and is sending letters to countries around the world saying they want to impose export restrictions on all elements of rare earth production. This will clog markets and make life difficult for countries around the world.”
President Trump said relations with China have been going “very well” over the past six months, but the sudden trade policy came as a big surprise to both him and “the leaders of the free world.” He also said that China has long “established a monopoly position in magnetics and other factors,” which he described as a “deliberate and hostile strategy.”
“The United States also has a much stronger monopoly position than China, but until now I have had no reason to take advantage of it!” Trump added that the letter sent by China was “many pages long” and detailed the elements it wanted to stop providing to other countries.
Trump also questioned whether it was a “coincidence” that the development coincided with “the first peace achieved in 3,000 years” in the Middle East.
The US president said, “For every element that China has a monopoly on, we have two. We never thought we would get to this point, but perhaps the time has come. One of the policies we are currently considering is a significant increase in tariffs on Chinese products imported into the United States,” indicating his intention to take economic measures in response to China’s stance.
*This is not investment advice.
