Trump to Impose Additional 100 percent Tariff on China
US President Donald Trump announced that he will implement an extra 100 percent tariff on Chinese imports starting next month. In a social media update, Trump stated that the US would implement export restrictions on essential software.
In a previous post on Friday, he responded to Beijing's recent decision to strengthen its regulations on rare earth exports, claiming that China is "turning very hostile" and attempting to keep the world "captive."
He warned he might withdraw from a meeting with President Xi Jinping of China. He later remarked that he had not canceled it, but he was unsure "that we're going to have it."
"I'll be present no matter what," he told reporters at the White House.
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Financial markets declined following Trump's comments, as the S&P 500 ended the day down 2.7percent, marking its largest drop since April.
China leads in the production of rare earth elements and specific other essential materials, which are crucial parts in vehicles, smartphones, and numerous other products.
The last time Beijing imposed stricter export controls - following Trump's tariff increase on Chinese products earlier this year - many US companies dependent on those materials voiced strong objections. The automaker Ford had to halt production temporarily.
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Besides enforcing stricter regulations on rare earth exports, China has launched a monopoly probe against the US tech company Qualcomm, which may delay its purchase of another semiconductor manufacturer.
Despite being headquartered in the US, a large part of Qualcomm's operations is focused in China.
Beijing has announced it will impose new port fees on vessels connected to the US, including those owned or managed by US companies.
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"Some quite unusual occurrences are taking place in China!" Trump stated in a social media post on Friday. "They are turning increasingly aggressive."