‘I don’t want them to play the rare earth game with us,’ Trump told reporters.
President Donald Trump on Oct. 19 outlined top demands he has of China ahead of a potential meeting with Chinese Communist Party (CCP) leader Xi Jinping, including soybean purchases and curbing fentanyl precursor exports.
Trump will be traveling to South Korea for the APEC summit on Oct. 29. Beijing has yet to confirm Xi’s attendance.
Trump originally announced the meeting after a two-hour phone call with Xi on Sept. 19, but said there was “no reason” to do so after the CCP made an unprecedented and outsized move by announcing a massive restriction on rare earth exports. The Trump administration had responded with criticism and threats of increased tariffs and other measures, sending a message that Beijing had worsened its negotiating position with the move.
Trump on Oct. 19 pointed out China wants to lower its tariffs, again suggesting the Chinese regime is in a poorer negotiating position.
“They’re paying an unbelievable amount of money to the United States,” Trump told reporters on Air Force One. “They probably can’t pay that much, and I’m OK with that, we can lower that, but they have to do things for us, too.”
Tariffs that the administration announced in April have been paused to allow negotiations between the two countries; otherwise, China would be paying a 157 percent tariff, according to Trump.
China is currently paying 55 percent tariffs, which will go up to 155 percent “unless we make a deal,” the president said at a press briefing on Oct. 20.
Trump pointed out that it was the sum of multiple tariffs imposed for different reasons, including a 20 percent tariff based on Beijing’s refusal to curb exports of fentanyl precursors. Trump said any reductions the Chinese regime seeks will have to be dependent on what they agree to.
“I want to help China … but they have to give us things, too,” Trump said on Oct. 19 aboard Air Force One.
“China’s going to buy soybeans. I want China to stop with the fentanyl. I don’t want them to play the rare earth game with us.”
Trump had threatened additional 100 percent tariffs to begin on Nov. 1—which would go into effect right after his APEC trip—and export controls on “critical software” in response to Chinese rare earths export controls.
Trump was confident China would resume soybean purchases.
“Otherwise, I’m not going to make a deal,” he said.
“Our farmers have been boycotted by China as a negotiating point. I don’t want that. Our farmers are great.”
