Trump threatens to impose additional 100% tariff on China

“I’m going to be there regardless,” he told reporters at the White House.

Financial markets dropped in the wake of Trump’s remarks, with the S&P 500 closing down 2.7%, its steepest fall since April.

China dominates production of rare earths and certain other key materials, which are key components in cars, smartphones and many other items.

The last time Beijing tightened export controls – after Trump raised tariffs on Chinese goods early this year – there was an outcry from many US firms reliant on the materials. Carmaker Ford even had to temporarily pause production.

In addition to tightening rules for rare earth exports, China has opened a monopoly investigation into the US tech firm Qualcomm that could stall its acquisition of another chipmaker.

Although Qualcomm is based in the US, a significant portion of its business is concentrated in China.

Beijing has also said it will charge new port fees to ships with ties to the US, including those owned or operated by US firms.

“Some very strange things are happening in China!” Trump wrote in a post on social media on Friday. “They are becoming very hostile.”

The US and China have been in a fragile trade détente since May, when the two sides agreed to drop triple-digit tariffs on each others’ goods that had nearly stopped trade between the two countries.

The move left US tariffs on Chinese goods facing an added 30% levy compared with the start of the year, while US goods entering China face a new 10% tariff.

Officials have held a series of talks since then on matters including TikTok, agricultural purchases, and the trade of rare earths and advanced technology like semiconductors.

The two sides were expected to meet again this month at a summit in South Korea.