Trump: Gasoline prices will be below $2 soon

President Donald Trump on Friday warned that he is considering a “massive increase of tariffs” on Chinese imports in response to Beijing’s new export restrictions on rare earth minerals. Trump said the move would serve to “financially counter” China’s actions.

In a post on Truth Social, the president also suggested he could cancel his upcoming meeting with Chinese President Xi Jinping over the escalating dispute. “There is no way that China should be allowed to hold the world captive with its rare earths policy,” Trump wrote, prompting a drop in U.S. stock markets shortly after his remarks.

China currently dominates the global supply of rare earth minerals, accounting for roughly 70% of production. These materials are essential for key industries including electric vehicles, defense systems, and semiconductors.

Beijing’s Ministry of Commerce announced Thursday that, beginning December 1, foreign companies must secure a license to export any product containing more than 0.1% rare earths from China or manufactured using Chinese extraction, refining, magnet-making, or recycling technology. Trump said his administration is evaluating “many other countermeasures” in addition to tariffs.