Trump wanted a trade deal. Xi opened a new front instead.
Beijing shattered a fragile trade truce with Washington this week, announcing sweeping restrictions on exports that contain even trace amounts of Chinese rare earth.
An irate President Donald Trump is threatening to retaliate with 100 percent tariffs and new restrictions on exports of critical software — and said there’s “no reason” to meet with Chinese leader Xi Jinping later this month.
The rupture marks the sharpest escalation in tensions between Washington and Beijing since the two countries slapped triple-digit tariffs on each other this spring and threatens to derail months of quiet efforts to stabilize the relationship. It also underscores how delicate the two sides’ uneasy economic peace has been and raises fresh doubts about whether Trump, operating with a hollowed-out national security team and a fragmented China strategy, is prepared for Beijing’s latest power play.
It’s also the clearest test yet of Trump’s ability to translate his transactional approach to trade into a ..