U.S. President Donald Trump fired off a sharp warning on Truth Social, accusing China of sending global letters threatening export restrictions on rare earth elements and other vital production inputs. He described the move as “extremely aggressive,” aimed at “clogging markets” and undermining countries reliant on those materials.
Trump expressed surprise that this shift came after a period of improving U.S. – China relations. Despite recent progress, he said, the announcement caught him and other “free world leaders” off guard. He stressed China’s long-held monopoly over magnetic and rare earth elements, labeling it a “deliberate and hostile strategy.”
In response, Trump floated the possibility of a sweeping increase in tariffs on Chinese imports, asserting that the U.S. holds stronger monopoly positions in many of those same elements. He also noted that the Chinese directive lists in detail which elements Beijing intends to restrict.
As tensions escalate, White House sources confirm that the administration is actively considering retaliatory economic measures. Meanwhile, China has responded by expanding rare-earth export controls to cover 12 elements and limiting exports of related mining and processing technology.
These restrictions now include stringent licensing requirements even for foreign producers using Chinese materials or equipment, a sweeping move that mirrors U.S. export controls on technology.
Industries using semiconductors, magnets, or dual-use technologies are under increased scrutiny.
Trump has also indicated he may skip a proposed meeting with Chinese President Xi Jinping during his upcoming Asia trip, citing rising distrust.
The stakes are high in global supply chains, especially for critical sectors like defense, semiconductors, EVs, and clean energy, all reliant on rare earth inputs.
If the U.S. moves forward with dramatic tariff hikes, it could mark a turning point in trade policy escalation, turning rare-earth diplomacy into a high-stakes flashpoint between economic powerhouses.
