Trump Threatens Tariffs After China's Rare Earth Export Curbs

US President Donald Trump criticized China"s recent expansion of export controls on rare earth elements, labeling it a "hostile" attempt to monopolize global supply chains. The Chinese Ministry of Commerce announced on October 9, 2025, that it has added five elements—holmium, erbium, thulium, europium, and ytterbium—to its restricted list, which now includes 12 of the 17 rare earths essential for defense, semiconductors, and electric vehicles.

The new regulations require licenses for products containing even trace amounts of Chinese content, specifically targeting the military and semiconductor sectors. In response, Trump announced the cancellation of plans for a summit with Chinese President Xi Jinping at the upcoming APEC meeting. He warned of "massive" tariff increases and other countermeasures from the U.S., leveraging American strengths in key materials. Following this announcement, S&P 500 futures fell by 0.7% in the markets.

These developments come amid ongoing tensions between the U.S. and China regarding trade and technology. For more on related coverage, see recent developments in international relations.