Trump Threatens Cooking Oil Import Ban as U.S.-China Trade Tensions Escalate

President Trump denounced China's suspension of American soybean purchases as an "economically hostile act," suggesting potential retaliation by halting U.S. imports of Chinese cooking oil.

Washington:

U.S. President Donald Trump characterized China's cessation of American soybean imports as an "economically hostile act" on Tuesday, threatening reciprocal action by potentially terminating purchases of cooking oil and other trade items from the Asian economic powerhouse.

"We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution," Trump declared on his Truth Social platform.

Interestingly, these online remarks followed shortly after Trump had adopted a more conciliatory tone regarding U.S.-China relations during a White House press briefing.

"We have a fair relationship with China, and I think it'll be fine. And if it's not, that's okay too," Trump told reporters at the White House.

Trade frictions between the world's two largest economies have intensified during Trump's second administration, with reciprocal tariffs reaching triple-digit percentages in some instances.

U.S. Treasury Secretary Scott Bessent criticized Beijing in a Financial Times interview on Monday, accusing China of attempting to damage the global economy through its comprehensive new export restrictions on strategic rare earth materials.

Trump maintained that the United States needs to "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," Trump stated. "Where the punches are thrown, you got to put up the blocks."

On Truth Social, Trump emphasized that China's import suspension was creating hardships for American soybean farmers.

U.S. imports of animal fats, greases and processed oils, including used cooking oil, have increased dramatically in recent years, driven by growing domestic production of biomass-based diesel, according to government statistics.

China tariff threat

Although tensions between Washington and Beijing have decreased from their highest point, the truce remains fragile.

Following Beijing's implementation of new controls on rare earth technology exports, Trump announced plans to impose an additional 100-percent tariff on Chinese goods effective November 1.

U.S. Trade Representative Jamieson Greer indicated to CNBC that this timeline could potentially be moved forward.

"A lot depends on what the Chinese do," Greer stated in the interview, adding that Beijing had "chosen to make this major escalation."

China leads the world in producing minerals essential for manufacturing magnets critical to automotive, 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 cancel a scheduled meeting with Xi at the upcoming Asia-Pacific Economic Cooperation (APEC) summit later this month.

China accused the United States of employing "double standards" over the weekend following Trump's threat of additional tariffs.

On Tuesday, China declared its readiness to "fight to the end" in a trade war with the United States.