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Trump threatens ‘massive’ tariff increase on China over rare earths dispute

Oct 10, 2025, 12:36pm EDT
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US President Donald Trump.
Evelyn Hockstein/File Photo/Reuters

US President Donald Trump threatened a “massive increase” of tariffs on China on Friday, arguing it was necessary to “financially counter” new rare earth export controls that China has imposed on America.

Posting on Truth Social, Trump said that there was no way that China “should be allowed to hold the World “captive”″ over its export policies. He added that Beijing’s new policy meant that there was “no reason” to hold a planned meeting with Chinese leader Xi Jinping in South Korea later this month.

Stocks dropped on the announcement, with the S&P 500 falling as much as 1.7%.

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