U.S. President Donald Trump has lashed out at China for suspending American soybean imports, calling the move an “economically hostile act” and warning that Washington could retaliate by halting purchases of cooking oil from the world’s second-largest economy.
“We are considering terminating business with China related to cooking oil and other areas of trade as retribution,” Trump wrote on his Truth Social platform on Tuesday.
His online remarks came shortly after a more measured statement to reporters at the White House, where he suggested that ties between Washington and Beijing remained manageable.
“We have a fair relationship with China, and I think it’ll be fine. And if it’s not, that’s okay too,” Trump said.
Trade frictions between the two economic giants have flared once again during Trump’s second presidency, with both sides imposing heavy tariffs at various points.
In a recent interview with the Financial Times, U.S. Treasury Secretary Scott Bessent accused Beijing of undermining the global economy through sweeping new export restrictions on rare earth materials a key sector in global technology manufacturing.
Trump, meanwhile, said the U.S. must “be careful with China.”
“I have a great relationship with President Xi (Jinping), but sometimes it gets testy because China likes to take advantage of people,” he said. “When the punches are thrown, you have to put up the blocks.”
On Truth Social, Trump added that China’s halt of soybean imports was already hurting American farmers.
According to U.S. government data, imports of animal fats, greases, and processed oils including used cooking oil have surged in recent years, largely driven by the nation’s growing production of biomass-based diesel.
China tariff threat
While tensions between Washington and Beijing have de-escalated from their peak, the truce remains shaky.
After Beijing imposed fresh controls on the export of rare earth technologies and items, Trump said he would roll out an additional 100-percent tariff on the country’s goods from November 1.
And US Trade Representative Jamieson Greer told CNBC separately that this timeline could be accelerated.
“A lot depends on what the Chinese do,” Greer said in the interview, adding that Beijing had “chosen to make this major escalation.”
China is the world’s leading producer of the minerals used to make magnets crucial to the auto, electronic and defense industries.
Bessent told the Financial Times: “This is a sign of how weak their economy is, and they want to pull everybody else down with them.”
Last week, Trump also threatened to scrap a planned meeting with Xi at the Asia-Pacific Economic Cooperation (APEC) summit starting later this month.
China over the weekend accused the United States of “double standards” after Trump’s threat of further tariffs.
On Tuesday, China said it was ready to “fight to the end” in a trade war with the United States.
China says ‘no winners’ in trade war
China said on Wednesday that trade wars had “no winners”, after US President Donald Trump warned that the United States could stop buying cooking oil from the country.
Trump issued the threat Tuesday after slamming Beijing’s halt of US soybean purchases as an “economically hostile act”.
“We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution,” Trump said on his Truth Social platform.
While tensions between Washington and Beijing have eased from their peak earlier in the year, a truce struck by the leaders remains shaky.
Beijing imposed fresh controls on the export of rare earth technologies and other items last week, leading Trump to warn Friday that he would roll out an additional 100 percent tariff on the country’s goods from November 1.
China’s foreign ministry on Wednesday said trade disputes were “not in the interests of any party” when asked about Trump’s threat on cooking oil, which is used for biofuels including biodiesel and sustainable aviation fuel.
“The two sides should resolve relevant issues through consultation on the basis of equality, respect and mutual benefit,” spokesman Lin Jian told reporters at a regular briefing.
“China’s position on China-US economic and trade issues is consistent and clear,” he added.
The United States was the biggest purchaser of Chinese used cooking oil last year, buying 1.27 million tonnes, a rise of more than 50 percent from 2023.
That accounted for more than 40 percent of Chinese exports of the product, according to the US Department of Agriculture.
Beijing on Wednesday also defended its latest export controls on rare earths as protecting global security, after the European Union’s trade chief Maros Sefcovic said the restrictions were unjustified and called for a response.
China is the world’s leading producer of the minerals used to make magnets crucial to the auto, electronics and defence industries.
Chinese leaders had “made clear their position” on its latest policies, spokesman Lin said.
Controls were implemented “to better safeguard world peace and regional stability and fulfill international obligations such as non-proliferation”, he added.
