Trump Threatens Major Tariff Surge on China, Questions Need for Xi Meeting

Trump Threatens Major Tariff Surge on China, Questions Need for Xi Meeting

Washington: U.S. President Donald Trump has reignited tensions with Beijing, announcing that he is considering a massive increase in tariffs on Chinese imports and signaling uncertainty over a planned meeting with Chinese President Xi Jinping. The remarks mark a sharp escalation in the already strained trade relations between the world’s two largest economies.

Trump said he is weighing a “very substantial” tariff hike potentially doubling duties on Chinese goods as part of a broader strategy to counter what he called China’s “unfair trade practices” and “aggressive economic behavior.” Speaking to reporters at the White House, he stressed that the U.S. must respond firmly to Beijing’s recent export restrictions on critical minerals and advanced technologies, which Washington sees as an attempt to weaponize supply chains.

According to Trump, the proposed measures could take effect as early as November 1, targeting a wide range of products entering the U.S. from China. “China has been taking advantage of America for far too long,” he declared, emphasizing that his administration would impose “the toughest economic measures yet” to restore balance in trade relations.

Beyond tariffs, Trump also outlined plans to impose new export controls on software and other high-tech components, particularly those used in artificial intelligence, aviation, and defense manufacturing. The move, he said, was designed to “safeguard America’s technological superiority” and prevent sensitive know-how from reaching adversarial states.

Officials familiar with the discussions indicated that restrictions on aircraft parts and key industrial equipment are also under review. These measures, if implemented, could significantly disrupt the global technology and manufacturing ecosystem, which heavily depends on U.S.-China trade links.

The escalating trade rhetoric has cast a shadow over the much-anticipated meeting between Trump and Xi Jinping, which was expected to take place during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea next month. Trump, in a social media post, remarked that “there seems to be no reason” for such a meeting under the current circumstances, hinting that the talks might be called off.

However, when pressed by journalists, he appeared to soften his tone, saying he “hadn’t canceled” the meeting and that it might still go ahead “if conditions are right.” Beijing, for its part, has not confirmed any plans for the summit, with Chinese officials maintaining a cautious silence amid the growing uncertainty.

The announcement triggered immediate jitters across global financial markets. On Wall Street, the S&P 500 index dropped more than two percent, its steepest one-day decline in months, as investors feared a renewed U.S.-China trade war. Technology and manufacturing stocks particularly those with significant exposure to Asia suffered the sharpest losses.

Analysts said the sudden surge in protectionist rhetoric could destabilize markets already grappling with high interest rates and slowing global growth. Gold prices and U.S. Treasury bonds rose as traders sought safe-haven assets amid the uncertainty.

Economists and policy experts warn that a fresh round of tariffs and export controls could have far-reaching global repercussions. China remains the dominant supplier of rare earth elements essential for electric vehicles, defense systems, and renewable energy technologies and any disruption in trade could hit multiple industries worldwide.

Meanwhile, Washington’s proposed export restrictions on critical software could undermine China’s ambitions to become a global technology leader, further straining diplomatic ties. Experts note that both nations are entering an era of economic confrontation intertwined with strategic rivalry, where trade, technology, and security interests increasingly overlap.

While Trump’s aggressive trade stance resonates with his base, many analysts caution that it could backfire, leading to higher prices for U.S. consumers and retaliation from Beijing. China, in past disputes, has responded with its own tariffs and curbs on American companies operating within its borders.

As the deadline for the proposed measures approaches, the world watches to see whether diplomacy or confrontation will prevail. The uncertainty over the Trump–Xi meeting further deepens the sense that U.S.–China relations are entering one of their most volatile phases in recent memory.


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