President Trump has sent mixed signals on trade with China, causing market uncertainty. Just days ago, he threatened 100 percent tariffs on Chinese goods, calling Beijing’s new controls on rare earth minerals “sinister and hostile.”
Only 48 hours later, Trump shifted to a conciliatory tone, saying China was having a “bad moment” and assuring that the United States wanted to help, not hurt the country. Analysts say this seesaw reflects an internal tug of war within the administration over the best approach to Trump China Trade issues.
Trump has pursued both retaliation and reconciliation. He has considered decoupling the U.S. from China, suspending technology sales, and revoking visas for Chinese students. Yet, he also seeks a potential meeting with President Xi Jinping to negotiate a broader trade deal. Treasury Secretary Scott Bessent and Vice President JD Vance signaled optimism that a compromise is possible before the November 1 tariff deadline.
China’s restrictions on rare earth minerals, essential for semiconductors, motors, and fighter jets, have added urgency. The minerals are largely controlled by China, and new export rules require licenses for products using Chinese materials. Trump viewed these moves as a challenge to previous trade agreements.
Markets reacted sharply to the contrasting messages. U.S. stocks fell after Trump’s tariff threats but rebounded slightly after his softer tone. Experts say the administration is balancing domestic pressures, especially from American farmers affected by China’s halt in agricultural purchases, with the need to maintain leverage in negotiations.
Observers say Trump’s dual approach aims to show resolve while leaving room for negotiation. “The initial threats were meant to punish Beijing’s overreach; the softer tone reassures markets and allies,” said a senior China fellow at the Foundation for Defense of Democracies.
The situation underscores the uncertainty in Trump China Trade policy and highlights the challenges of negotiating with China amid economic and political pressures.
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