Trump Considers Canceling Xi Meeting Amid China's Rare Earth Export Restrictions

President Donald Trump indicated on Friday that he may cancel a planned meeting with Chinese President Xi Jinping, citing China's recent restrictions on rare earth exports.

"I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so," Trump posted on his Truth Social platform.

In response to China's actions, Trump suggested the possibility of imposing additional tariffs on Chinese imports.

"One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America," he stated.

China's new export controls require foreign companies to obtain special approval for shipping rare earth elements abroad. These elements are crucial for various technologies, including electronics, computer chips, and jet engines.

The announcement led to a decline in the S&P 500, which fell as much as 2% amid concerns over escalating trade tensions between the world's two largest economies.

The Chinese Embassy in Washington did not immediately respond to requests for comment.

Analysts suggest that China's restrictions on rare earth exports could significantly impact global supply chains, given the country's dominance in the sector.

The situation remains fluid, with potential implications for international trade and economic stability.