Trump Raises China Tariffs to 130 Percent or Potentially More, Says 'No Reason' to Meet Xi

Welcome to China and Focus. I'm Tiffany Meyer. Our top story is an unusual crisis unfolding within the top ranks of China's Communist Party. President Trump making a surprising comment. Very strange things are happening in China. His comments coming as rumors swirl that China's top leader may have suffered a sudden stroke. Tip for tat. China vowing to match US port fees against Chinese ships with its own starting next Tuesday. rates and schedules highly mirroring the US policy. China launching an anti- monopoly probe into US chipmaker Qualcomm. The investigation targeting its deal with Israeli firm Auto Talks. How it could heighten tensions in US China tech trade. Trump taking aim at what he calls unfair business conditions. He's proposing a ban on Chinese airlines flying between China and the US from using Russian airspace, a route American carriers are barred from. In preparations underway in Taiwan to deter a potential conflict with communist China, the island's president just unveiled a new air defense system called T-dome designed to intercept incoming missiles from China. The outcomes of that conflict tell us that aggression fails, unity prevails, and that peace is won through strength. [Music] President Trump just condemned China's new moves restricting rare earth exports as extraordinarily aggressive. He is imposing an additional 100% tariff on China on top of all existing tariffs, raising the baseline to 130%. The new tariff hike is set to kick in November 1st, the day China's rare earth restrictions take effect. Trump warned the tariff could come sooner along with other measures if China retaliates. Here's more. >> President Trump announcing that China will pay an added 100% tariff on top of what they're currently paying to the US. That's as he's calling out the CCP for being very hostile and sinister with their new export controls on rare earth elements. On Truth Social, Trump wrote, "Starting on November 1st, 2025 or sooner, depending on any further actions or changes taken by China, the United States of America will impose a tariff of 100% on China over and above any tariff that they are currently paying. Also, on November 1st, we will impose export controls on any and all critical software." This would bring tariffs on China up to 130%. 10% reciprocal tariff, 20% tariff due to China's fentinel crisis, and now this latest 100% tariff. This comes as Trump said early on Friday that he's cancelling a planned meeting with Chinese leader Xiinping. Both were expected to meet later this month in South Korea during the apex summit. It's because the CCP is announcing new restrictions on exporting rare earth elements and other materials which are used to make electronics from iPhones to missile defense systems and the US heavily relies on rare earths of which China has an abundant supply. >> A meeting between President Trump and Chinese leader Xi Jinping may not happen. Trump suggests calling it off in a long post Friday on Truth Social, stating there seems to be no reason to meet with Xi. This comes after China dramatically tightened rare earth exports. Trump opens his post with a strong statement. Some very strange things are happening in China. He goes on to say that China is becoming very hostile and is holding the world captive by restricting access to metals and magnets used in electronics, computer chips, lasers, and other technologies. He says the US has been contacted by other countries which are reportedly very angry at what he called great trade hostility which came out of nowhere. He adds he is considering a massive increase in import taxes on Chinese products in response to China's actions. Tensions remain as China blocks US access to rare earths important for electronics and other technologies. Following President Trump's warnings to fight back against Beijing's recent moves, both on social media and public, China is responding. Beijing approved messages are circulating on staterun media, a common way to signal China stance to the world. Chinese reports warned that the US economy still depends heavily on Chinese supply chains, making true decoupling nearly impossible. They also say these restrictions aren't new, but a bargaining chip meant to push Trump back to the negotiating table. Following Trump's latest comments on China, the market is reacting. The Dow Jones drops a significant 600 points on Friday, a key measure of the largest US companies. The S&P 500 dips the most since April, tracking the performance of 500 top US stocks. In notable timing, President Trump stirs speculation with a surprising comment in his Friday social media post stating some very strange things are happening in China. We'll break down the context and the events behind it as unverified reports from multiple sources circulate that China's communist leader Xi Jinping may have suddenly suffered a stroke. Now, we present a new segment, China and Focus insights. A closer look behind the headlines. Over the past two days, messages from multiple sources have echoed similar claims, suggesting that Chinese leader Xiinping may be in serious condition, possibly due to a sudden stroke. Among them are Duwin, the former CCP official, and Tangg by Chiao, a pro-democracy activist. US President Donald Trump is fueling speculation about shei's possible health issue, stating some very strange things are happening in China. He added, "This was a real surprise not only to me, but to all the leaders of the free world, and things that were routine are no longer routine at all." Sai Shen Khan, a well-known commentator on China affairs, said in his expost, quote, "The CCP's latest series of actions has caused Sino US relations to continue to plummet, leaving Trump unsure who is in charge within China and who can actually talk. As a planned meeting between Trump and she is coming at the end of this month, the market is anticipating a pretty big breakthrough in the trade talks between the two nations. According to Treasury Secretary Scott Bessant, meanwhile, Beijing's recent actions have shown a very hostile stance. China has unveiled new curbs on its exports of rare earths and other critical materials. On Friday, Beijing announced that US ships will be charged for docking at Chinese ports starting next Tuesday. Chinese officials have also opened an antirust probe into Qualcomm, a leading US chip design and patent licensing firm. Is this merely a negotiating tactic ahead of the planned Xi Trump meeting? Meanwhile, Taiwanese President Leqing Ta recently referencing the Nobel Peace Prize urged Trump to help stop Beijing's military aggression against Taiwan. On its national day, lie also unveiled the new T-dome air defense system amid rising threats from China. Previously, the president pledged that Taiwan's defense spending would reach 5% of GDP by 2030. Across the Taiwan Strait, China reportedly punished journalists for publishing reports that leaked details about new weapons. State broadcaster CCTV announced that she is expecting to attend and deliver a speech at the upcoming Global Women's Summit next week. China's state-run Shin Wa reports that on October 10, Xiinping called Kim Jong-un to mark the 80th anniversary of North Korea's ruling party. are state media outlets moving to quash the rumors about shei's health and possible political turmoil >> and it was quite clear that Xiinping could not go. He is in the middle of a life and death struggle to retain his position uh which he he may well lose in the in the uh fourth plenum coming up on October 20th to 23rd. the uh APEC summit in Seoul uh in at the end of October. Uh the it's quite clear now that Xiinping will not go to that as well because by that stage Xinping will either have consolidated power or be in the middle of a an actual uh physical battle for survival uh or he'll be gone from public office or re least retired to a symbolic position. Analysts suggest that amid escalating internal power struggles, the Chinese Communist Party may not rule out using war as a means to resolve its domestic challenges. Beijing is sending a series of what President Trump described as very hostile signals this week. On Friday, China announced a tip fort policy against the United States. US ships docking at Chinese ports will now face new fees. The Chinese Ministry of Transport says all US vessels will be charged with $56 per net ton at Chinese ports starting next Tuesday. Ships owned by US businesses, organizations, individuals, or entities with stakes over 25% will all be subjected to the new rule. The supplies on top of any ships flying a US flag or built in Washington. Each US ship visiting Chinese ports will be charged the fee up to five times per year, and the fee will increase every year until 2028, roughly tripling the starting rate. Worth noting, China's new port fee rule mirrors many aspects of the US port fee policy announced back in April. They both have similar rates and annual increases and will take effect on the same day. Chinese staterun media says Beijing's new rule is designed to retaliate against Washington. It also highlights Beijing's posture just ahead of Chinese and US leaders meeting in South Korea for the APEC forum later this month. On Thursday, after China had announced stricter controls on its exports of rare earth minerals targeting the West, the Trump administration has proposed banning Chinese airlines from flying over Russia on US routes. Here's a look at what's behind the proposal. The US is stepping up pressure on Chinese airlines, proposing a ban on their use of Russian airspace for flights to and from America. The move announced Thursday by the Transportation Department, aims to level the playing field. Chinese carriers currently fly over Russia, indicated here in red, cutting travel time and fuel costs. US airlines have to take a longer path around Russia to reach the same destination, highlighted in blue. American carriers say that gives the Chinese airlines an unfair edge. The transportation department calls it a significant competitive factor and wants it stopped. Though the new proposal exempts cargo only flights, Chinese airlines have just 2 days to respond to the proposed order. A final order which could take effect as early as November might impact Chinese carriers like Air China and China Eastern. But it wasn't clear if Hong Kong based Cath Pacific would be affected. Russia has blocked US airlines from its skies since 2022. A tit fortat response after Washington banned Russian flights over the US after the invasion of Ukraine. >> Over to Taiwan. October 10th marks Taiwan's national day. President Leingda unveiled a new air defense plan called T-dome. He emphasized that peace is maintained through strength. Entities Taiwan correspondent Joy Chu has the story. As the Chinese Communist Party intensifies it military threat toward Taiwan, the island, officially known as the Republic of China, is marking its 140th National Day, October 10th, right here in Taipei. And behind me, you can see the Presidential Office Building, where today's celebrations are now underway. The outcomes of that conflict tell us that aggression fails, unity prevails, and that peace is won through strength. >> President li said Taiwan will continue investing in advanced defense and day technologies to develop smart defense combat system. A special defense budget will be proposed by years. Defense spending will exceed 3% of GDP next year and reach 5% by 2030. We will accelerate our building of the T-dome, establish a rigorous air defense system in Taiwan with multi-layered defense, high level detection, and effective interception, and weave a safety net for Taiwan to protect the lives and property of citizens. Lie also expressed hope that China will act responsibly, stop distorting UN resolution 2758 and stop corive efforts to change the status quo across the Taiwan Strait. UN resolution 2758 recognize the People's Republic of China as the only legitimate representative of China to the United Nations. Beijing however takes this a step further saying it means that Taiwan is part of China. Reporting from Taiwan, Joy Chu on City News. >> Taiwan says a Chinese Coast Guard vessel was spotted sailing near the disputed Prattis Islands in the South China Sea on Friday. The Taiwanese Coast Guard said the vessel was detected about 20 nautical miles from the islands. Officials noted its automatic identification system had been turned off, apparently to hide the ship's exact location from Taiwan. Calling Chinese Coast Guard 3102. This is Taiwan Coast Guard. You have entered our territorial waters without permission. Your action has impacted the maritime order and safety. Please immediately turn around. leave our territorial waters as quickly as possible. >> Taiwan says the action is a deliberate grayzone tactic intended to undermine peace and stability in the region. A grayzone strategy uses tactics that fall between peace and full-scale war. Beijing is applying pressure through a mix of military maneuvers, cyber attacks, and economic measures. It's also trying to infiltrate Taiwan through propaganda and information campaigns, aiming to take control without formally declaring war. Democratically governed Taiwan has faced increased military and political pressure from communist China in recent years. Taiwan's defense ministry says it's training soldiers to shoot down drones in response to Chinese incursions. China has deployed its coast guard in recent years on patrol exercises and has boarded Taiwanese fishing vessels. Taiwan's outlying islands are also closer to China than the main island and often face incursions from Chinese drones. China claims sovereignty over Taiwan and has threatened to take the island by force. Taiwan rejects those claims. Coming up, crowds returning for China's Golden Week holiday spree, but spending staying sluggish. A closer look at how travelers are reacting to the nation's slowing economy. In North Korea, marking 80 years of rule with a massive military parade. China and Russia sent top officials, but not communist leader Xiinping. What message does that send? An expert weighs in after the break here on China in Focus. Welcome back to China in Focus. I'm Tiffany Meyer. China's Golden Week, the country's biggest travel and shopping holiday, returned this year with record crowds, but spending stayed below expectations. During the 8-day holiday in early October, around 2.4 billion trips were made to popular tourist destinations across China. Total domestic spending during Golden Week hit its lowest level in nearly a decade. Many Chinese are sharing their struggles on social media. We also spoke with several citizens to get their firsthand perspectives. Here's what they had to say. >> Life in China is very stressful. I feel so anxious. No matter how hard you work, I can never make enough. There are always bills to pay. Electricity, gas, kids, elderly parents, all kinds of expenses. Vegetables are so expensive. How could anyone afford them? I eat very little. And when it comes to food, clothing, housing, and transportation, I save wherever I can. I even pick up discarded vegetables and I've stopped buying clothes. Hotels in China's capital have been feeling the chill, too. According to Beijing's official reports, the average monthly profit for hotels during the first half of this year was less than $850. Yes, you heard that right, under $850 US. That's less than half of Beijing's average monthly wage. Economists are calling it a consumption downgrade with people cutting back, trading luxury for essentials. Sales of luxury cars and jewelry are slipping while more affordable goods are drawing bigger crowds. Other pressures are adding to the slowdown. Property prices have been falling for nearly three and a half years. And official reports show youth unemployment hovered around 19% in August, weighing heavily on confidence and spending. North Korea is marking 80 years of rule with a massive military parade. Russia and China are sending high level officials, but Chinese regime head Xinping will not be attending. To understand the message behind the show of force and what it means for US power projections in the region, we spoke with Gregory CPPley, president of the International Strategic Studies Association. Now, North Korea is celebrating its 80th, you know, year in position as that ruling party with a military parade. And Russia has sent uh Dmitri Midvidev, close ally, President Putin. And China has sent its second highest ranking member, Premier Liang, to it's actually his first time uh or the premier's first time in 16 years. What does that signal in terms of the China North Korea relationship by sending the premier? Well, uh it was clear that it was such a an an important anniversary that China had to send somebody uh and was quite clear that Xiinping could not go. He is in the middle of a life and death struggle to retain his position uh which he he may well lose in the in the uh fourth plenum coming up on October 20th to 23rd. So they had to send somebody. Liang, the premier has just effectively served as the Chinese representative at the UN General Assembly. So he's proven that he can that he's a high status figure to go to these functions. Kim Jong-un had to show that he had some allies. And so you saw as you said former President Medved there from Russia. We saw um also the uh Communist Party leader from uh from Vietnam Tam there as well. So it was an interesting um gathering. But if it if it was meant to represent a significant alliance of anti-western powers, I think they failed miserably. Uh the what we do know is that uh Vietnam is a bitter enemy of the people's republic of China and yet they sent uh the chairman Lam there. Uh they or general secretary we we know Kim Jong-un actively disparages Xiinping and the people's republic of China off camera. So this is not really a relationship you can count on. Uh that it's not a a great military alliance. the military of all of the three major states excluding Vietnam which is there just because it's a communist government but the the relationship between the other three is fractious their militaries are either preoccupied as in the case of Russia or they are fragile untested and almost certainly deeply flawed as in the cases of North Korea and the People's Republic of China. So as a showcase it wasn't that important. I want to dig into this because as you mentioned of course China has a lot of its own internal instability happening right now in the political level and other areas especially the economic level as well but in terms of this alliance if you will or anti-West faction you've been hearing a lot the past couple years of this new axis of evil right uh China North Korea Iran and then the other ones you want to say in the the surrounding orbit there if you will but given you know their fractious relationship here what Does this mean or not mean in terms of US power projection in that region? >> Well, I think it shows that the US power projection into the region under President Trump has revived dramatically uh and is being is very effective. What was also important to note in in the uh with the parade was that the Iranian uh clerical government was not represented there. And that's critical supposedly in this new axis of evil. um against the west. Iran's being very careful. It's the Ayatollah there are keeping their heads down because they don't want to disturb things. They are still in close relationship with the Russian government, but yet they still didn't come to Pyongyang. So, uh, this is a very, if if this is what they call a a solid alliance, then, you know, we we we don't have a lot to worry about except for the fact that they could be letting off a a few firecrackers around the world because they do have uh viable nuclear weapons in North Korea. >> That's all for today's China in Focus. I'm Tiffany Meyer. If you have any feedback on the show or have something you'd like to see us cover, send us an email at chinafocusentd.com. We'd love to hear from you. For roundtheclock original news coverage, visit us at ntd.com or download our NTD app. Thanks for watching. See you soon. [Music] [Music]