US Tariffs on China: Trump Threatens 500 Percent Tariffs Over Russian Oil and Rare Earth Exports

US tariffs on China may reach 500% as Washington accuses Beijing over Russian oil imports and rare earth export curbs, heightening global trade tensions.

US Tariffs on China Escalate Over Russian Oil and Rare Earth Dispute

The US tariffs on China have become the latest flashpoint in an intensifying global trade war. Washington has threatened to impose tariffs of up to 500 percent on Chinese imports, citing Beijing’s continued purchases of Russian oil and recent restrictions on rare earth exports. The move marks a dramatic escalation between the world’s two largest economies, with far-reaching consequences for global supply chains and market stability.

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Why the US Is Threatening Massive Tariffs on China

US Treasury Secretary Scott Bessent announced on Wednesday that a bipartisan majority in the US Senate supports granting President Donald Trump authority to impose the US tariffs on China. He argued that China’s purchase of Russian oil is effectively “fueling the Russian war machine.”

“China buys 60 percent of Russian energy,” Bessent said. “Their oil trade directly undermines global sanctions and empowers Moscow.”

Bessent also claimed that China imports nearly 90 percent of Iranian energy, linking Beijing’s energy policies to wider geopolitical instability. President Trump added that India’s Prime Minister Narendra Modi has promised to halt Russian oil purchases, urging China to “follow suit.”

China Slams the US Tariffs as ‘Economic Coercion’

Beijing condemned the US tariffs on China as “economic coercion and unilateral bullying.” Chinese Foreign Ministry spokesperson Lin Jian insisted that the country’s energy trade with Russia is “legitimate and lawful.”

“If China’s legitimate rights and interests are harmed, we will take firm countermeasures,” Lin warned.

China’s Commerce Ministry further criticized Washington’s rhetoric, saying the US tariffs on China undermine global trade stability and violate fair market principles.

Rare Earth Export Controls Deepen the US-China Rift

The tension over rare earth exports has added fuel to the fire. China, which dominates around 70 percent of the global rare earth supply, recently expanded its export controls on critical minerals and related technologies.

US officials allege that Beijing is weaponizing these resources, while China defends the measures as necessary to prevent military misuse and to protect national security.

Treasury Secretary Bessent warned that such restrictions could “force countries to decouple from Chinese supply chains,” calling China “an unreliable partner.”

Diplomatic Window Still Open Despite Rising Tariff Tensions

Despite the harsh rhetoric, both sides have left room for dialogue. China’s Commerce Ministry said it remains open to resolving the US tariffs on China dispute through “equitable consultations based on mutual respect.”

President Trump and President Xi Jinping are expected to meet at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month. However, experts say the ongoing tariff threats and rare earth disputes could overshadow any progress.

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Global Impact of US Tariffs on China

Economists warn that the US tariffs on China could send shockwaves across global markets. Higher tariffs would likely increase consumer prices in the US, while supply chain disruptions could hit industries dependent on Chinese manufacturing and materials, including electronics, EV batteries, and defense equipment.

Meanwhile, China’s rare earth restrictions could hurt Western tech and clean energy industries, amplifying inflationary pressures and slowing economic recovery worldwide.