Trump Warns of Financial Retaliation Against China’s Rare Earth Export Restrictions

President Donald J. Trump has condemned China’s unilateral restrictions on rare earth mineral exports, accusing the communist regime of imposing “extreme conditions” on global use of critical materials. The move, announced by Beijing’s Commerce Ministry, disrupted a prior trade truce and was interpreted as an attempt to pressure U.S. negotiations.

Trump’s response, posted on Truth Social on Friday, October 10, 2025, emphasized potential U.S. countermeasures. “For every Element that they have been able to monopolize, we have two,” he stated, vowing to financially retaliate against China’s actions. The president criticized Beijing for issuing “hostile” letters to countries, restricting exports of rare earths and other materials, and blocking military-use licenses for foreign entities.

The restrictions, which require licenses for products containing Chinese-sourced rare earths and deny approvals for dual-use or military end users, threaten U.S. manufacturers and defense industries. Trump alleged China had “been lying in wait” and claimed the U.S. holds stronger monopoly positions, though he had previously avoided leveraging them.

The National Pulse reported that China’s rules aim to “safeguard national security,” but Trump suggested the move was a miscalculation. He hinted at escalating trade tensions, including “massive increases of Tariffs” on Chinese goods, while noting no recent communication with President Xi Jinping. The post reportedly undermined Chinese assumptions about U.S. diplomatic intentions.