Global markets were rattled on Friday after U.S. President Donald Trump warned that he may cancel his upcoming meeting with Chinese President Xi Jinping, accusing Beijing of using “unfair trade tactics” and hinting at a new wave of tariffs on Chinese goods.
Trump’s comments came just hours after China announced fresh export restrictions on rare earth minerals — critical components used in electric vehicles, defense systems, and technology manufacturing. The move was widely seen as a response to growing U.S. pressure on Chinese tech companies.
In a statement from the White House, Trump said he sees “no reason to sit down” with Xi unless China rolls back its trade limitations and “stops manipulating global supply chains.” He added that the U.S. is “fully prepared” to increase tariffs “beyond anything seen before” if Beijing continues what he called “economic warfare.”
The remarks immediately sparked volatility in global markets, sending Asian and U.S. stocks lower, while investors rushed toward safe-haven assets like gold and the U.S. dollar. Economists warn the rhetoric could reignite a trade war, just as both nations had been working to stabilize ties after years of tariff battles.
Diplomatic sources said the planned APEC summit meeting between the two leaders, originally scheduled for later this month, is now in doubt, with both sides standing firm on economic sovereignty and national interests.
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Trump’s renewed tariff threat underscores the fragile state of U.S.–China relations — and signals that the world’s two largest economies may once again be heading toward a tense confrontation with global implications.
