US-China Trade War Heats Up: China Bans Rare Metals, President Trump Strikes Back With 245% Tariffs

In a bold new move, US President Donald Trump's administration has announced a sharp rise in tariffs on goods imported from China. According to a Hindustan Times (HT) report, the new tariff rate could go as high as 245 per cent. This step has deepened the ongoing trade dispute between the United States and China.

The White House said the decision comes after China placed new restrictions on important materials that are used in defence, space, and technology. These include metals like gallium, germanium, antimony, and some rare earth elements. China has now stopped sending some of these materials abroad, which are important for car companies, computer chip makers, and aircraft parts.

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This decision by China has caused concern, as many countries depend on these materials. In response, the Trump administration said that these actions are unfair and harmful to American industries.

Last week, China also raised tariffs on US goods up to 125 per cent. This was after President Trump had already increased tariffs on Chinese goods to 145 per cent. However, he did not raise tariffs on products from other countries for now, as talks are still going on.

The White House mentioned that over 75 countries have shown interest in making trade deals with the US. This means that the US is trying to work with more countries, but it is standing firm against China for now.

The US government has also started a national security review into how it gets important resources from other countries. It wants to make sure it does not depend too much on foreign materials that are crucial to defence and industry.

President Trump says this is part of his "America First" plan to protect American workers and businesses.

While the full details of the new tariffs are not out yet, experts believe many goods might become more expensive.