""One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America," Trump said on Truth Social Friday. "There are many other countermeasures that are, likewise, under serious consideration." Trump also hinted at potential tit-for-tat export restrictions to China. The big picture: China announced export controls on a range of minerals the U.S. desperately needs to power the AI boom and other key sectors, like defense."
"It was widely seen as a play to gain leverage in trade talks, but the economic damage to the U.S. would be extensive if Beijing followed through because the U.S. does not currently have the capacity to replace Chinese rare earth minerals. The Chinese threat and Trump's bellicose response could signal a breakdown in the surprisingly stable superpower relationship we've seen over the last several months, or it could be a bit of brinksmanship that ultimately results in a trade agreement."
Trump announced consideration of a massive increase in tariffs on Chinese products and said other countermeasures are under serious consideration. He also hinted at potential tit-for-tat export restrictions targeting China. China imposed export controls on a range of minerals that the United States needs for AI development and key defense sectors. The United States currently lacks capacity to replace Chinese rare earth minerals, which would cause extensive economic damage if Beijing restricts supply. The Chinese measures and the U.S. response could either escalate into a breakdown in the superpower relationship or constitute brinksmanship leading to a trade agreement.
Read at Axios
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