Summary
President Donald Trump announced a plan to impose 100 percent tariffs on Chinese goods starting November 1. China responded by expressing its readiness to engage in a trade fight, arguing the U.S. approach was wrong. The conflict centers around China's export controls on rare earth minerals and Trump's tariff threat.
Key Facts
- President Trump plans to impose 100 percent tariffs on Chinese goods beginning November 1.
- China supplies about 70 percent of the world's rare earth minerals, which are important for many high-tech industries.
- China announced export restrictions on these rare earths, requiring licenses for foreign entities to export them.
- China criticized the U.S. for threatening high tariffs and warned it would take strong measures to protect its rights.
- Beijing's Ministry of Commerce stated China prefers not to have a trade war but is not afraid of one.
- President Trump's move could significantly disrupt trade as it adds to existing high tariffs on Chinese imports.
- The Chinese government believes the U.S. misuses export controls against China.
