Summary
President Donald Trump plans to add a 100% tariff on Chinese goods after China imposed controls on exporting rare earth minerals. These minerals are important for making products like smartphones and electric cars. Both countries are reacting to each other's trade restrictions, which might lead to a new trade war.
Key Facts
- President Trump announced a 100% tariff on Chinese goods, starting November 1.
- China set new export controls on 12 out of 17 rare-earth metals and certain refining equipment.
- China stated these measures were for national security and to respond to US trade restrictions.
- Rare earth minerals are vital for manufacturing technologies such as semiconductors and electric vehicles.
- The US is a significant buyer of Chinese rare earths, essential for its defense industry.
- Trump's tariff threats come weeks before a planned meeting with Chinese President Xi Jinping.
- China accused the US of having a "double standard" in trade policies.
