It was thought that the hard line would continue before after Trump came to power, and he didn't think of a bit of movement, he changed the door on the back and forth. Things can be said from the beginning of October, the U.S. side first, on October 3, the U.S. Trade Representative's Office issued news, to charge additional port charges for Chinese ships. For Chinese companies owned or operated ships, every stop to the U.S. port, must pay $50 per net tonne; if the ship is built in China, it is $18 per net tonne or $2 per unloaded tonne. This policy is scheduled to start on October 14, because of the investigation of China's maritime industry unfair subsidies, affecting the global shipping balance.
China responded quickly. On October 9, the Ministry of Commerce issued a series of announcements to strengthen rare earth export controls. The rare earth is a necessity for high-tech and defense, China accounts for more than seven percent of the global mining, processing more than nine percent. The announcement said that any commodities containing China's rare earth ingredients exceeds 0.1% must be exported before departure. This directly hit the U.S. pain, because F-35 fighter jets, electric vehicle batteries, chip production are inseparable from rare earth. The Ministry of Defense and technology enterprises began to strain, the supply chain was broken, production was stopped. At the same time, the Ministry of Transportation also acted, from October 14, the U.S. shipping industry to collect special port charges, starting at 400 y
As soon as these countermeasures came out, the American market exploded. The stock market fell accordingly. The Nasdaq index fell more than 3.5% in a single day, and the market value of the S & P 500 index evaporated more than US$700 billion. Technology and manufacturing stocks led the decline as investors worried that a shortage of rare earths would drag down production. The business community is lobbying the White House not to escalate. The pressure is even greater in agricultural states. China has suspended buying U.S. soybeans, stocks have piled up, and prices have collapsed. Farmers in the Midwest went to congressmen to complain that these places are the Republican Party's voting base. If the problem becomes serious, the Republican Party may lose its seat in the mid-term elections. Inflation has also added to the chaos, with CPI stabilizing above 3%, energy and consumer goods prices rising, and people's cost of living is high. The Trump administration has to weigh it carefully and continue to carry on hard. The domestic economy will not be able to withstand it.
On the morning of October 10, Trump posted a long article on Truth Social with full firepower. It was announced that starting from November 1, an additional 100% tariff will be imposed on China's exports to the United States, which will be superimposed on existing tariffs. By the way, restrictions are imposed on the export of key software. What's even worse is that he said that he originally planned to meet with China at the APEC summit, but now there is no need. The summit was held in Gyeongju, South Korea in November. It was originally a good opportunity for high-level dialogue, but now it seems to have fallen through. Trump's words imply that China's rare earth control is a hostile act and the United States has to protect its own interests. When the market heard this, panic intensified and fell sharply at the opening. There was also chaos internationally. European stock markets followed suit and the Nikkei index closed down 2%. Car companies such as General Motors and Tesla have warned that missing parts could close factories. The energy industry is keeping a close eye on the transportation of liquefied natural gas. As soon as shipping friction escalates, fuel prices will soar.
It was unlikely that after less than eight hours, Trump spoke at the White House press conference. The Chinese and U.S. relations were good, and they were still looking forward to meeting at APEC. This change in front and behind the legs made the media and analysts embarrassed. Internal pressure estimates were key, stock market crashes, corporate pressures, economic advisors persuaded to point out. Agriculture ministers and trade representatives met to discuss how to ease farmers' losses. Congressional Republican head also urged Trump, not to look hard, to take care of economic stability. APEC host South Korea called on both sides to calm down, not to affect regional cooperation. Japan and Australia these members also watched, afraid of a trade war.
At the same time, U.S. port charges for Chinese ships were also quietly adjusted. In the original scheme, the charges for foreign shipbuilding carriers dropped from $150 per net tonne to $46 per net tonne, which was not small. The exemption clause was added, and natural gas and liquefied oil gas ships under the long-term lease agreement did not pay. This adjustment was issued through the federal communiqué, with no big banner propaganda, and obviously a tactical retreat. The energy industry relaxed and avoided oil and gas prices. A spokesman for the Chinese Ministry of Commerce responded, welcoming the dialogue, but also prepared to cope with the escalation.
The reason for Trump's quick concessions is obvious. China's counterattack is bad, rare-earth control threatens defense and high-tech, F-35 production and chip manufacturing is a mess, US competitiveness is weak. Economic problems are also forced to adjust, the stock market crashes, the enterprise is not dry. Inflation is high, agricultural products exports shell, soybeans orders are zero, soybeans are bullish, the White House has to consider. The agricultural state is Trump's basic plate, harass them, the election is suspended. Originally, Trump wanted to talk about soybeans trade at APEC and solve export blockade. Now, the estimate is that it is hard to carry down, the US loses more. November 1 tariff effect is whether the hammer is really falling. The APEC