US-China Trade War Looms After Trump Cancels Xi Meeting

A trade war between the US and China is likely inevitable. President Donald Trump has reacted harshly to Beijing's restrictions on the export of rare earth metals, threatening retaliatory financial measures.

The seriousness of the situation is emphasized by Trump's announcement to cancel his meeting with Chinese President Xi Jinping. "I was supposed to meet with President Xi at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea in two weeks, but now it seems there's no point," Trump wrote on the Truth Social network.

He accused Beijing of implementing a long-term strategy to "hold the world hostage." "Depending on what China says about their just-published hostile 'decree,' I will be forced, as the President of the United States of America, to financially counter their move," Trump warned.

He also expressed confidence that the US has enough resources to counter China's monopoly. "For every element they have managed to monopolize, we have two," he added.

As a possible response, Trump noted that the White House is currently considering a large-scale increase in tariffs on Chinese goods imported into the US. Thus, the tension between the world's two largest economies is reaching a new, dangerous level.