U.S. Trade Representative Jameson Greer discusses China’s rare earth export controls, Trump’s 100% tariffs starting November 1, and the global impact on tech and agriculture, as tensions rise between Washington and Beijing.
Here’s What U.S. Trade Representative Says on Trump’s 100% Tariff and China’s Rare Earth Controls
In a major escalation of the ongoing trade tensions, China overnight defended its latest export controls on rare earth minerals as a “legitimate measure,” even as the United States prepares to impose an additional 100% tariff on Chinese goods starting November 1. President Donald Trump announced the move in response to Beijing’s new restrictions on the export of critical rare earth materials—essential components in everything from smartphones to satellites.
China’s Ministry of Commerce issued a statement clarifying that these new export controls are “not export bans,” saying that licenses would be granted for eligible applications. The ministry also said China had notified “relevant countries and regions” through dialogue mechanisms, though it appears the United States was not among them. According to U.S. officials, the announcement came as a surprise to Washington.
Speaking to Fox News, U.S. Trade Representative Jameson Greer said, “Clearly, the Chinese have realized that they have wildly overstepped the bounds of what’s acceptable. We were not notified. As soon as we found out from public sources, we reached out to the Chinese to have a phone call, and they deferred.” Greer added that the administration views Beijing’s latest actions as “a power grab” that will not be tolerated.
He further hinted that the messaging from Beijing in recent days suggests that China understands the gravity of the situation and the backlash it has triggered. On the question of whether a meeting between President Trump and President Xi Jinping could still happen at the end of the month, Greer said, “It could. The President is always willing to talk. We’ve already had outreach at the staff level on the Chinese side, so we will see.”
Greer emphasized that Washington cannot allow China’s new export control program to assert dominance over global technology supply chains. “We cannot allow this new program to assert control over exports of technology in the United States and around the world. That’s something that can’t stand,” he stated.
Rare earth elements are vital for semiconductor chips, electric vehicles, smartphones, defense equipment, and satellites. Greer explained that while these elements are not actually “rare,” China’s monopoly on processing has given it enormous leverage. “China controls almost 90% of the processing. They’ve undercut other countries that tried to produce it, which is why we’re in this particular situation,” he said.
He noted that countries like the U.S., Australia, and Argentina could play a larger role in breaking China’s monopoly, adding that Argentina is not only rich in rare earths but also in uranium and appears open to U.S. investment partnerships.
On the agricultural front, the discussion also turned to how China’s trade policies have impacted U.S. soybean farmers. Over the past year, U.S. soybean exports to China have plummeted from $12.6 billion to virtually zero, as China accounts for nearly half of global soybean demand. Greer said the administration is working on a “bridge” support plan for American farmers affected by the trade war.
“Our farmers don’t want a handout; they want to trade,” Greer said. “We’re opening new markets—Cambodia and Vietnam have already lowered tariffs on soybeans. We’re also looking at domestic uses of soybeans in fuels and other areas. It’s a multi-pronged approach.”
He also confirmed that the Treasury Department is exploring direct subsidies through the Farm Credit Bureau to provide relief for farmers, noting that “interest rates skyrocketed under Biden,” and that this year’s bumper crop adds complexity to the situation.
On the market reaction, Greer addressed the mild decline reported by The Wall Street Journal, which noted that investors had grown accustomed to trade tensions having little effect on market performance. “It’s normal for markets to react when China takes broad actions like this,” Greer said. “They’re purporting to control the world’s technology supply chains and have a veto on anything we want to send from America to Mexico, Europe, or Australia. But these measures aren’t in place yet—the tariffs don’t take effect until November 1—so we’ll likely see markets calm in the coming week.”
When asked if China was planning any countermeasures to the 100% U.S. tariffs, Greer said, “They haven’t announced anything specific. I think they’ve realized they’ve overstepped. We had a deal in place with China since May—if they kept sending rare earth magnets, we would keep our tariffs in check. They violated that agreement by expanding their controls.”
Greer stressed that there remains room for “offramps” and diplomatic dialogue. “The President continues to have a great relationship with President Xi. We talk to our counterparts, but we need to make sure we can find a way back to the stable situation we were in a week ago,” he said.
As both nations brace for the next round of economic confrontation, all eyes are on the potential Trump-Xi meeting later this month, which could determine whether this escalating standoff leads to renewed negotiations—or a full-scale global supply chain crisis.
Disclaimer:
This article is based on televised remarks and official statements available in the public domain. It aims to provide accurate reporting and analysis of current U.S.-China trade developments. Readers should verify details through official government and media sources for confirmation.