President Donald Trump’s preference for one-on-one deals is facing a major stress test as his fragile trade truce with China teeters on collapse. Beijing’s latest move to impose sweeping export controls on rare earths and critical minerals—vital for US defense and tech industries—triggered shockwaves in Washington. Markets initially shrugged off the news, but Trump’s fiery Truth Social post threatening a “massive increase” in tariffs sent Wall Street into a tailspin, marking its worst selloff in six months.

The renewed escalation comes weeks before Trump and Chinese President Xi Jinping are set to meet in South Korea to finalize a trade pact. Analysts say Beijing’s assertiveness reflects its growing leverage, given US dependence on Chinese materials. “China’s testing the limits of Trump’s transactional diplomacy,” noted Jon Hillman of the Council on Foreign Relations.

While Trump’s bilateral style may work with smaller nations, experts warn it falters against an increasingly self-reliant China. With both sides weaponizing export controls on semiconductors and critical minerals, the specter of another full-blown trade war looms large—one that could reshape global markets and test Trump’s vaunted dealmaking prowess like never before.

President Donald Trump’s preference for one-on-one deals is facing a major stress test as his fragile trade truce with China teeters on collapse. Beijing’s latest move to impose sweeping export controls on rare earths and critical minerals—vital for US defense and tech industries—triggered shockwaves in Washington. Markets initially shrugged off the news, but Trump’s fiery Truth Social post threatening a “massive increase” in tariffs sent Wall Street into a tailspin, marking its worst selloff in six months.

The renewed escalation comes weeks before Trump and Chinese President Xi Jinping are set to meet in South Korea to finalize a trade pact. Analysts say Beijing’s assertiveness reflects its growing leverage, given US dependence on Chinese materials. “China’s testing the limits of Trump’s transactional diplomacy,” noted Jon Hillman of the Council on Foreign Relations.

While Trump’s bilateral style may work with smaller nations, experts warn it falters against an increasingly self-reliant China. With both sides weaponizing export controls on semiconductors and critical minerals, the specter of another full-blown trade war looms large—one that could reshape global markets and test Trump’s vaunted dealmaking prowess like never before.