Trump's Demand List in the Trade War with China

President Trump's List of Demands from China

President of the United States Donald Trump identified three main issues that are escalating trade tensions between the U.S. and China: rare earth elements, fentanyl, and soybeans.

In statements made while returning from Florida to Washington on Sunday, Trump said, "We do not want them to play the rare earth elements game with us." Following the announcement that China would exert global control over minerals, Trump announced plans to impose a 100% tariff on China.

Anger Towards China and Tariffs

Due to China's failure to increase export controls on the deadly opioid fentanyl, Trump called on Beijing to reassess its responsibilities regarding this issue. This brought forth criticisms related to the opioid crisis in the U.S. Additionally, Trump demanded that China resume soybean purchases, stating that this request was completely normal.

Negotiations and Additional Tariffs

U.S. Treasury Secretary Scott Bessent announced that the U.S. and China will meet this weekend in Malaysia. Bessent made this announcement following an online meeting with Chinese Vice Premier He Lifeng on Friday. The upcoming talks between the two countries were described as "constructive exchanges of ideas" by the Chinese state media.

Trump expressed his strong anger regarding the Chinese government's control plans over rare earths, stating that he might cancel a possible meeting with Chinese President Xi Jinping as a result of these developments. He also announced that additional 100% tariffs would take effect starting November 1.

Fentanyl and Soybean Tensions

China has experienced a significant decrease in soybean imports; while it purchased approximately $12.6 billion worth of seeds last year, it made no purchases this year. Instead, it preferred to source from South America. Trump indicated in February that he would impose a 20% tariff on fentanyl shipments from China due to illegal distribution.

China has repeatedly emphasized that the resolution of the drug crisis is the responsibility of the U.S. Additionally, a spokesperson from the Chinese Foreign Ministry stated that the trade war would not benefit either side and that negotiations should continue based on equality and respect.

According to Bloomberg, Chinese delegates expressed at last week's IMF meeting that tightening export controls would not negatively affect trade flows.