Trump is heading off today to attend the Asia Pacific Economic Cooperation summit meeting in Seoul, South Korea. A lot of attention is being paid to the meeting of Trump with Chinese leader Xi Jinping on the sidelines of that meeting because it will be held in the aftermath of the latest flareup in the tariff war war between the to countries.
I blogged two weeks ago about how China, that usually does not initiate these things, did so in this case by placing restrictions on the export of rare-earth minerals that are vital in high technology. China has a dominant position in this area, since roughly 70 percent of rare earth mining, 90 percent of separation and processing, and 93 percent of magnet manufacturing, takes place in that country.
An enraged Trump immediately announced that he would impose 100% tariffs on all imports from China to the US and that he would also not meet with Xi during the summit. His treasury secretary Scott Bessent immediately tried to downplay fears of a new trade war escalation, saying that the two countries were engaged in trade talks. Trump then later said that the 100% tariffs would only be applied in November and that he would in fact likely meet with Xi after all to negotiate. Most people assumed that this was another case of TACO (Trump Always Chickens Out) in action, with Trump threatening extreme actions and then backing down.
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