Just when things were looking up between the world's two biggest economies, the uproars are back. On October 10, 2025, President Donald Trump dropped a bombshell on social media, announcing plans for a whopping 130% tariff on Chinese goods starting November 1.
China fired back days later with tight controls on rare earth exports, those key minerals powering everything from phone screens to electric car batteries. Now, both sides are blaming each other for lighting the fuse.
Summer brought hope. Back in September, trade talks in Madrid seemed to smooth things over, followed by a friendly phone chat between Trump and Chinese President Xi Jinping. Xi even gave a nod to the progress. But then, on September 20, the US quietly ramped up its own export bans. They added thousands more Chinese companies—jumping from about 3,000 to several thousand—to a restricted list, hitting tech firms hard.
Beijing saw that as a sneaky betrayal, coming just 10 days after Xi's warning to avoid one-sided moves. Fast forward to last week. Trump's tariff threat, building on the existing 30% duties, shocked markets. Stocks dipped, especially for tech giants relying on Chinese parts. In response, China's commerce ministry rolled out export limits on rare earths on October 12 from Beijing, calling it a direct counter to US aggression.
Trump called it "hostile" from the White House, while his Treasury Secretary Scott Bessent tried to calm nerves on a news channel, insisting a planned Trump-Xi meet in South Korea later this month is still on. Analysts in Shanghai, like Wu Xinbo from Fudan University, note how fragile that truce was—six months of calm shattered in a week.
This back-and-forth isn't just numbers on a page. It hits everyday folks: higher prices for gadgets, cars, and even farm tools if tariffs stick. Watching leaders point fingers, how exhausting it must be for businesses caught in the middle—always bracing for the next shoe to drop.
For now, China's ministry says talks are welcome, but not under threats. Will cooler heads prevail in South Korea? Let's see.
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