Wetin to know as Trump threaten to sama China additional 100% tariff

    • Author, Natalie Sherman
    • Role, Business reporter
  • Read am in 4 mins

US President Donald Trump don say e go impose additional 100% tariff on imports from China from next month.

Inside one post on social media, Trump say US go also put export controls on critical software.

Inside anoda post on Friday, e hit back at Beijing move dis week to tighten im rules for exports of rare earths, accusing China of "becoming very hostile" and trying to hold di world "captive".

E threaten to pull out of one meeting with China President Xi Jinping. E later say e never cancel am, but say e no know "e go hapun".

"I go dey dia regardless," e tell reporters for White House.

Financial markets drop after Trump remarks, wit di S&P 500 wey go down as e close 2.7%, im sharpest fall since April.

China dominate production of rare earths and some oda key materials, wey be key components for cars, smartphones and many oda items.

Di last time wey Beijing tighten export controls - after Trump raise tariffs on Chinese goods early dis year - many US firms wey dey reliant on di materials bin hala. Carmaker Ford even bin get to temporarily pause production.

In addition to tightening rules for rare earth exports, China also open one monopoly investigation into US tech firm Qualcomm wey fit pause im acquisition of anoda chipmaker.

Although Qualcomm dey based for US, key portion of im business dey concentrated for China.

Beijing don also say e go charge new port fees to ships with ties to US, including those wey dey owned or dey operated by US firms.

"Some very strange tins dey hapun for China!" Trump write inside post on social media on Friday. "Dem dey become very hostile."

US and China bin get one very fragile trade relationship since May, wen di two sides agree to drop triple-digit tariffs on each oda goods wey bin don nearly stop trade between di two countries.

Di move leave US tariffs on Chinese goods facing an additional 30% levy compared wit di beginning of di year, while US goods wey bin dey enter China face a new 10% tariff.

Officials don do different tok-tok since den on matters including TikTok, agricultural purchases, and di trade of rare earths and advanced technology like semiconductors.

Di two sides bin dey expected to meet again dis month for one summit for South Korea.

China expert Jonathan Czin, wey be fellow for di Brookings Institution, say Xi recent actions na part of plan to shape di upcoming talks, e say di recent rare earths directive no go go into effect immediately.

E add say e no tink say China dey worried about US retaliation in response.

"Wetin China carry comot di Liberation Day tariffs and di cycle of escalation followed by de-escalation na say di Chinese side get a higher pain threshold," e tok. "From dia perspective, di Trump administration blink."

For oda rounds of trade talks, China bin don push for looser US restrictions on semiconductors. E also dey interested in securing more stable tariff policieswey go make am easier for im businesses to sell into US.

Xi bin don use im country dominance of rare earths production as leverage.

But di export rules wey dem reveal week target overseas defence manufacturers seriously, Gracelin Baskaran, director of di critical minerals security program for Washington-based Center for Strategic and International Studies tok.

"Notin dey make America to move like targeting our defence industry," she tok. "US go get to negotiate because we get limited options, and inside dis time of rising geopolitical tension and potential conflict, we need to build our industrial defence base."

While Trump-Xi meeting now look like say e no go hapun, she say e no dey necessary to completely take am off di table.Ms Baskaran say time still dey and room for talks dey. China new rules no go take effect until December.

"Negotiations dey likely," she tok. "Who go do am and wia e go hapun go dey determined wit time."