by Steven Richards
President Donald Trump is urging China to reverse sweeping export restrictions on rare earth elements vital to advanced manufacturing, warning that further escalation of tariffs could lead to a depression.
“Don’t worry about China, it will all be fine!” the president wrote in a post Truth Social on Sunday evening. “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!!!”
After the Chinese government last week announced new export restrictions on rare earths that could upend the global supply chain and starve western militaries of vital components, Trump threatened to retaliate by imposing a 100% tariff on Chinese goods. He also said that a planned meeting with Chinese President Xi would be canceled.
On Monday, the Chinese did not back down in the face of the tariff threat, instead accusing the U.S. of “severely damaging the atmosphere of trade negotiations.”
China urges the U.S. to promptly correct its erroneous practices,” Chinese Ministry of Foreign Affairs spokesman Lin Jian said Monday. “If the U.S. insists on going its own way, China will certainly take resolute measures to safeguard its legitimate rights and interests.”
The U.S. and China have been locked in a renewed trade war for months after President Trump imposed substantial tariffs on the country early in his term. Trade negotiations have been slow. Before the export restrictions imposed by China, both countries were adhering to a 90-day truce that locked in U.S tariffs at 30% and Chinese retaliatory tariffs at 10%.
The Chinese first imposed export restrictions on certain types of rare earths in April, leading to similar U.S. retaliation. Both countries negotiated a framework agreement in London later that month to resume shipments of the vital metals. It is unclear how the new restrictions will impact that arrangement.
This year, China is projected to be America’s third-largest trade partner, behind Mexico and Canada, with an estimated $532.4 billion in trade. Last year, America had a $295.4 billion deficit with the communist country. From July 2024 to July 2025, the United States’ trade deficit with China decreased to $266.7 billion. This represents a 10 percent decrease.
According to the Joint Economic Committee, during that time span, America’s biggest trade deficit is with China, followed by Mexico at $188.4 billion and Vietnam at $154.8 billion.
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Steven Richards is a reporter for Just the News. Zachery Schmidt is the digital editor of The Star News Network and contributed to this story.
