"China's Suspension of U.S. Soybean Imports Is an Act of Economic Hostility"
Tensions Escalate Ahead of Summit Between Leaders at the End of This Month
U.S. President Donald Trump strongly criticized China's suspension of American soybean imports and warned of possible retaliation. Just two days after stating, "Everything will be fine with China," he has once again issued a hardline message toward Beijing. As the trade talks with Chinese President Xi Jinping approach at the end of this month, the tense standoff between the two countries is escalating as both sides seek to strengthen their negotiating positions.
On the 14th (local time), President Trump posted on his own social media platform, Truth Social, stating, "China's deliberate refusal to purchase our soybeans is an act of economic hostility that makes it difficult for American farmers." He added, "As a retaliatory measure, we may suspend business with China related to edible oil and other trade items."
He continued, "We can easily produce edible oil ourselves," emphasizing, "There is no need to purchase it from China."
Previously, after China imposed export controls on rare earth elements targeting the United States, President Trump immediately responded on the 10th by announcing an additional 100% tariff on Chinese products starting in November. The conflict between the two countries has also spread to the shipbuilding and shipping sectors. On the 14th, the Chinese Ministry of Commerce banned domestic companies and individuals from trading or cooperating with five U.S. subsidiaries of Hanwha Ocean, stating that this was a measure to strengthen national security. As both the United States and China have raised port fees in an effort to restrict each other's shipbuilding and shipping industries, tensions have further intensified, even affecting Korean companies that are strengthening cooperation with the United States in shipbuilding. With the U.S.-China summit scheduled to take place at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, at the end of this month, analysts say that both sides are engaged in a fierce battle of nerves to gain the upper hand in trade negotiations.
Just two days after announcing the additional tariffs on China, President Trump adopted a conciliatory tone on the 12th, saying, "I am trying to help China, not hurt it." However, he shifted back to a hardline stance just two days later. This is seen as a strategic move to both appease his core supporters in the farming community and strengthen his negotiating position ahead of the summit with President Xi.
Nevertheless, President Trump also expressed hope that the U.S.-China negotiations could be concluded smoothly. During a summit with Argentine President Javier Milei at the White House, he said, "We need to be cautious with China, but we have a fair relationship with them. In the end, everything will be fine."
Officials in the Trump administration also sought to ease concerns about a renewed escalation in the trade conflict between the two countries. Jamieson Greer, U.S. Trade Representative, said in an interview with CNBC that senior officials from both countries had met in Washington, D.C. the previous day, stating, "We believe we can resolve the conflict." He also indicated the possibility of a summit between the two leaders at the end of this month during APEC, saying, "We have secured a scheduled time for the meeting."
However, Greer also noted that whether to impose additional tariffs of up to 100% "depends greatly on how China responds." He emphasized, "It was China that chose this level of serious tension," and added, "We cannot allow China to maintain a system in which it exercises a kind of veto over the global advanced technology supply chain." He continued, "While the White House is also monitoring market trends, the Trump administration's focus is on building long-term economic success by reshoring supply chains to the United States and reducing dependence on China."
Meanwhile, as President Trump continues to alternate between hardline statements and conciliatory gestures in his characteristic mix of tough and soft strategies in his standoff with China, the market has also experienced volatility. Following President Trump's conciliatory remarks over the weekend that "everything will be fine," the New York stock market surged the previous day, but as his hardline statements were reported, the gains were completely erased by the end of the session. On the New York Stock Exchange, the S&P 500 index and the Nasdaq index fell by 0.16% and 0.76%, respectively, while only the Dow Jones index rose by 0.44%, resulting in a mixed close.
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