World

China’s Rare Earth Curbs: How Trump’s Tariffs and Export Controls Shift the Trade War

China deferred a US call after export controls, leading to tariffs and accusations of double standards.

October 12, 2025, 5:27 PM

A bustling container port in Shanghai, China, with stacks of colorful cargo containers and large cranes under a dramatic sunset sky.

A vast container port in Shanghai, China, is illuminated by the warm glow of a sunset, with numerous shipping containers and massive cranes visible. By dongfang / Shutterstock.com.

Executive Summary

The U.S. sought a phone call with China following Beijing’s expanded export controls on rare earth elements, but Chinese officials deferred the discussion.

In response, President Trump announced new 100% tariffs on China’s U.S.-bound exports and additional export controls on “any and all critical software.”

China defended its rare earth export restrictions due to military application concerns and accused the U.S. of “double standards” in trade.

The Story So Far

The current escalation in U.S.-China trade tensions stems from an ongoing dispute that reignited earlier this year with Trump’s return to the White House. This latest friction was triggered by China’s expansion of export controls on rare earth elements, which Beijing defended by citing concerns over military applications during a time of frequent conflicts. In response to what the U.S. called a “power grab,” President Trump imposed new tariffs and export restrictions on Chinese goods and critical software, further intensifying the economic conflict.

Why This Matters

The latest escalation in the U.S.-China trade dispute, initiated by China’s expanded rare earth export controls and a diplomatic snub, has prompted President Trump to impose significant new tariffs and export restrictions on critical software. This tit-for-tat action deepens economic and diplomatic tensions between the two global powers, potentially increasing volatility in financial markets and raising concerns about the stability of critical supply chains for essential materials and technology.

Who Thinks What?

U.S. Trade Representative Jamison Greer views China’s expanded export controls on rare earth elements as a “power grab” that was not officially communicated, leading President Donald Trump to impose new tariffs and export restrictions.

China’s commerce ministry defends its curbs on rare earth elements due to concerns over their military applications, particularly amidst frequent military conflicts, and accuses the U.S. of “double standards” in trade practices.

The United States sought a phone call with China following Beijing’s announcement of expanded export controls on rare earth elements, but Chinese officials deferred the discussion. This diplomatic snub intensified an ongoing trade dispute, prompting China to accuse the U.S. of “double standards” and leading President Donald Trump to impose new tariffs and export restrictions.

Escalating Trade Tensions

U.S. Trade Representative Jamison Greer stated on Fox News’ “Sunday Briefing” that the U.S. was not notified of China’s move through official channels. “As soon as we found out from public sources, we reached out to the Chinese to have a phone call, and they deferred,” Greer said, characterizing China’s action as “a power grab.”

In response to China’s expanded controls, President Trump announced on Friday the imposition of 100% tariffs on China’s U.S.-bound exports. Additionally, new export controls on “any and all critical software” are set to take effect by November 1.

President Trump commented on the situation via Truth Social on Sunday, stating, “Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it.” The Chinese embassy in Washington, D.C., did not immediately respond to a request for comment.

China’s Defense and Accusations

China’s commerce ministry, in a report by state broadcaster CCTV, defended its curbs on rare earth elements and related equipment. Beijing asserted that the restrictions are driven by concerns over the military applications of these elements, particularly “at a time of frequent military conflicts.”

The ministry also accused the U.S. of “double standards,” citing examples such as the addition of Chinese companies to a U.S. trade blacklist and the levying of port fees on China-linked ships. While defending its actions, China stopped short of announcing new levies on U.S. products in retaliation for Trump’s latest tariffs.

Global Market Impact and Future Outlook

The latest developments come as China and the U.S. remain embroiled in a trade war that reignited earlier this year with Trump’s return to the White House. Global financial markets experienced volatility as Trump had previously floated the possibility of canceling an upcoming meeting with Chinese President Xi Jinping.

Despite the current tensions, Greer expressed belief that markets would calm in the coming week. He also suggested that a meeting between Trump and President Xi on the sidelines of the Asia-Pacific Economic Cooperation forum in South Korea later this month could still occur.