"Tensions between China and the U.S. transcend any presidency or political party. But Donald Trump's return to the White House has brought new levels of rancor. A volley of tariffs were introduced, raised and reduced in the year's first half, igniting retaliation from Chinese leader Xi Jinping. But more recently, several months of relative calm had prevailed. That truce showed signs of fizzling this week, though, with China announcing strict new limits on exports of rare earth minerals crucial to high-tech products."
"Trump, in turn, threatened an additional 100% tax on Chinese imports by Nov. 1 and export controls on American software. Both sides also hit one another's ships with new port fees. Whether public moves by Washington and Beijing are meant to advance private talks between the two sides is unknown. But they roiled stock markets, with Friday bringing the S&P 500 its worst day since April and a new dose of uncertainty about what is next."
U.S.-China trade tensions reignited after months of relative calm through a sequence of tit-for-tat moves. China imposed strict new limits on rare-earth mineral exports that are vital to high-tech products. The U.S. threatened an additional 100% tax on Chinese imports by Nov. 1 and signaled export controls on American software. Both sides implemented new port fees affecting each other's ships. Global markets reacted with volatility, including the S&P 500 recording its worst day since April. Uncertainty persists over whether recent public actions are negotiation tactics ahead of high-level talks or the start of rapid escalation.
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