Trump Says “No Reason to Do So” on Meeting Xi Jinping, Plans Tariff Increase
U.S. President Donald Trump said on Friday he is considering
a major increase in tariffs on Chinese imports. He added that he saw little
point in meeting with Chinese President Xi Jinping in two weeks as planned,
saying there was “no reason to do so.” The statement triggered a sell-off in
the U.S. dollar and renewed market uncertainty.
China Tightens Exports, Trump Threatens Tariffs
China, earlier this week, tightened export controls on key
rare earth materials. On Friday, it announced additional port fees on U.S.
ships starting October 14. The measures were seen as part of the ongoing trade
tensions between the two countries.
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“Some very strange things are happening in China!” Trump
posted on social media. He also threatened to cancel the meeting with Xi and
warned of a “massive increase” in tariffs.
BREAKING: The S&P 500 falls 70+ points in seconds after President Trump publishes the below paragraph about China.Trump says he is calculating increased tariffs on Chinese products.Trump also says there is “no reason” to meet Chinese President Xi anymore. pic.twitter.com/fKPadrPefL
— The Kobeissi Letter (@KobeissiLetter) October 10, 2025
Market Slides Amid Trump’s China Remarks
Following the comments, U.S. stocks fell sharply. The Dow
Jones Industrial Average dropped 0.8%, or more than 350 points. The S&P 500
declined 1.3%, and the Nasdaq Composite fell over 2%, led by losses in
technology shares.
Investors also focused on private economic reports as
official data releases remained on hold. The U.S.
government shutdown entered its tenth day, delaying several scheduled
updates on the economy.
The US and China have finalized a trade understanding reached last month in Geneva, US Commerce Secretary Howard Lutnick told @kaileyleinz and @jmathieureports on “Balance of Power” https://t.co/qZyEIt78e6 pic.twitter.com/qQXIC8eK7r
— Bloomberg TV (@BloombergTV) June 26, 2025
U.S.-China Rare Earth Deal Announced
Earlier, the U.S.
and China finalized a trade agreement focused on rare earth minerals. The
deal aims to address supply chain concerns for critical manufacturing
components, including microchips.
Following the announcement, major U.S. and Asia-Pacific
stock indices rose. Technology companies such as Nvidia, Apple, and Amazon
gained, while some rare earth mining firms saw declines amid expectations of
increased supply from China.
The full impact will depend on the deal’s implementation and
further negotiations.
This article was written by Tareq Sikder at www.financemagnates.com.
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