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Trump Threatens Tariffs as China Restricts Rare Earth Exports

by Priya Shah – Business Editor

Trump Accuses China​ of ‘Hostage’ Tactics Following Gaza Peace Deal Push

WASHINGTON (AP) ‍ – Former President Donald Trump asserted Tuesday that China is holding the world “hostage” with its control over rare earth minerals, deeming the situation ‌”especially inappropriate” in the wake of ​his ‍calls for a Gaza ⁤peace deal.The​ statement comes ​amid escalating tensions between the‍ U.S. and China, marked by‍ the ⁢implementation of ⁢reciprocal port fees‍ starting ⁢this week.

Trump’s post on social⁣ media alluded to potential trade repercussions, though the ⁣exact nature⁢ of his threat ‌remains open to interpretation.⁢ It could be a bid to⁢ leverage China,or ⁣a signal⁢ of escalating trade conflict possibly leading to increased tariffs.

The exchange ‍unfolds against a backdrop of existing ‌trade disputes. ⁢China previously imposed ⁤restrictions on rare earths and refused to purchase ‌American‌ soybeans in ⁢response to tariffs enacted during the ​Trump administration, as noted by⁣ Nebraska Republican ‌Rep. Don‌ Bacon, who stated, “China has not⁢ been a fair-trade partner for years.”

Analysts are ⁢divided on the implications⁢ of the renewed rhetoric. Wendy Cutler, senior vice president of⁢ the Asia Society Policy institute, characterized ⁤Trump’s post as⁣ highlighting ‍the fragility of the current détente between the two⁢ nations, ‌questioning whether either side ‌will attempt de-escalation to⁢ salvage ‌planned bilateral meetings.

Cole McFaul,a research fellow at Georgetown University’s Center for Security and⁤ Emerging Technology,suggested Trump may be preparing⁢ for negotiations under the assumption china ⁢has‍ overplayed its ‌hand,while Beijing believes it has secured concessions through previous talks.

Craig Singleton, senior director⁤ of the China program at the Foundation for Defense ​of Democracies, warned Trump’s⁤ post⁢ could “mark‍ the beginning of the end of the tariff ​truce” that had ​lowered tax rates between the two countries. He added that the risk of⁢ “mutually assured disruption”‍ is now very real, with ‍both sides appearing unwilling to‍ yield.

The⁤ ultimate⁣ course of action remains unclear, as neither the Trump administration’s intentions ⁣nor China’s response are yet defined.

AP writers Stan Choe in New York and Josh Funk in Omaha, Nebraska, contributed⁣ to this‌ report.

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