Trump threatens to cancel meeting with Xi Jinping after Beijing tightens exports rules

US President Donald Trump has threatened to pull out of a planned meeting with Chinese President Xi Jinping following Beijing’s decision to tighten export controls on rare earth elements.

In a statement on Truth Social, Trump expressed his frustration, saying he saw “no reason” to meet with Xi later this month and accused China of “becoming very hostile” by attempting to hold the world “captive," Caliber.Az reports. 

Trump’s post also hinted at a potential “massive increase of tariffs on Chinese products” as a response to what he described as a “sinister and hostile move” by China. He warned that the US would be forced to “financially counter their move” if China continues with its restrictive export policies.

The tightened rules come alongside a Chinese investigation into the US tech firm Qualcomm and new port fees targeting ships linked to the United States. These developments have raised concerns about escalating trade tensions just months after a fragile détente was reached in May, when both countries agreed to drop many tariffs.

Following Trump’s remarks, financial markets reacted negatively, with the S&P 500 dropping approximately 1.4% in late morning trading.

Trump highlighted the global implications of China’s export restrictions, noting that other countries had expressed anger over what he called “great trade hostility” that “came out of nowhere.” He emphasised that the U.S. holds monopoly positions in critical elements as well, stating, “I have just not chosen to use them… UNTIL NOW!”

The planned meeting between Trump and Xi at the upcoming APEC summit in South Korea now appears uncertain, as Trump said, “There was no reason to do so” in light of China’s recent actions.

By Sabina Mammadli