Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations

Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations
Elon Musk holds up a chainsaw he received from Argentina's President Javier Milei, right, as they arrive to speak at the Conservative Political Action Conference on Feb. 20, 2025, in Oxon Hill, Maryland. (AP Photo/File)
Short Url
Updated 30 May 2025

Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations

Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations
  • The world’s richest person got a seat at Trump’s table and put $250 million behind his campaign
  • He was suddenly everywhere — in Cabinet meetings, sleeping in the White House, or with his young son in the Oval Office
  • “They made some changes without really knowing what they were doing... they set themselves up for failure,” says think tank exec

WASHINGTON: Elon Musk arrived in the nation’s capital with the chain saw-wielding swagger of a tech titan who had never met a problem he couldn’t solve with lots of money, long hours or a well-calibrated algorithm.
President Donald Trump was delighted to have the world’s richest person — and a top campaign donor — working in his administration, talking about how he was “a smart guy” who “really cares for our country.”
Musk was suddenly everywhere — holding forth in Cabinet meetings while wearing a “tech support” shirt and black MAGA hat, hoisting his young son on his shoulders in the Oval Office, flying aboard Air Force One, sleeping in the White House. Democrats described the billionaire entrepreneur as Trump’s “co-president,” and senior officials bristled at his imperial approach to overhauling the federal government.
After establishing Tesla as a premier electric automaker, building rockets at SpaceX and reshaping the social media landscape by buying Twitter, Musk was confident that he could bend Washington to his vision.
Now that’s over. Musk said this week that he’s leaving his job as a senior adviser, an announcement that came after he revealed his plan to curtail political donations and he criticized the centerpiece of Trump’s legislative agenda.
It’s a quiet exit after a turbulent entrance, and he’s trailed by upheaval and unmet expectations. Thousands of people were indiscriminately laid off or pushed out — hundreds of whom had to be rehired — and some federal agencies were eviscerated.

But no one has been prosecuted for the fraud that Musk and Trump said was widespread within the government. Musk reduced his target for cutting spending from $2 trillion to $1 trillion to $150 billion, and even that goal may not be reached.
In Silicon Valley, where Musk got his start as a founder of PayPal, his kind of promises are known as vaporware — a product that sounds extraordinary yet never gets shipped to market.
Trump said Thursday on his Truth Social platform that he would hold a press conference Friday with Musk. “This will be his last day, but not really, because he will, always, be with us, helping all the way,” Trump added. “Elon is terrific!”
Musk’s position was always designed to be temporary, and he had previously announced his intention to dedicate more of his time to his companies. But he also told reporters last month that he was willing to work part-time for Trump “indefinitely, as long as the president wants me to do it.”
Musk got a seat at Trump’s table and put $250 million behind his campaign
It was clear that Musk wouldn’t be the typical kind of presidential adviser around the time that he showed the world his belly button.
Racing on stage at a campaign rally one month before the election, he jumped for joy next to Trump, his T-shirt rising to expose his midriff. Musk had already sold Trump on his idea for a Department of Government Efficiency while also putting at least $250 million behind his candidacy.
The plan called for a task force to hunt for waste, fraud and abuse, a timeworn idea with a new twist. Instead of putting together a blue-ribbon panel of government experts, Trump would give his top donor a desk in the White House and what appeared to be carte blanche to make changes.
Musk deployed software engineers who burrowed into sensitive databases, troubling career officials who sometimes chose to resign rather than go along. Trump brushed off concerns about Musk’s lack of experience in public service or conflicts of interest from his billions of dollars in federal contracts.
Their unlikely partnership had the potential for a generational impact on American politics and government. While Musk dictated orders for government departments from his perch in the White House, he was poised to use his wealth to enforce loyalty to the president.
His language was that of catastrophism. Excessive spending was a crisis that could only be solved by drastic measures, Musk claimed, and “if we don’t do this, America will go bankrupt.”
But even though he talked about his work in existential terms, he treated the White House like a playground. He brought his children to a meeting with the Indian prime minister. He let the president turn the driveway into a makeshift Tesla showroom to help boost sales. He installed an oversized screen in his office that he occasionally used to play video games.
Sometimes, Trump invited Musk to sleep over in the Lincoln Bedroom.
“We’ll be on Air Force One, Marine One, and he’ll be like, ‘do you want to stay over?’” Musk told reporters. The president made sure he got some caramel ice cream from the kitchen. “This stuff’s amazing,” Musk said. “I ate a whole tub of it.”




Elon Musk and President Trump shake hands as they attend the men's NCAA wrestling competition at the Wells Fargo Center in Philadelphia, Pennsylvania, on March 22, 2025. (AFP)

Looking back on his experience in government, he described it as a lark.
“It is funny that we’ve got DOGE,” an acronym that references an online meme featuring a surprised-looking dog from Japan. “How did we get here?”
Musk did not give federal workers the benefit of the doubt
From the beginning, Musk treated federal workers with contempt. At best, they were inefficient; at worst, they were committing fraud.
His team offered them a “fork in the road,” meaning they could get paid to quit. Probationary employees, generally people new on the job without full civil service protection, were shown the door.
Anyone who stayed faced escalating demands, such as what became known as the “five things” emails. Musk wanted every government employee to submit a list of five things they accomplished in the previous week, and he claimed that “failure to respond will be taken as a resignation.”
Some administration officials curtailed the plan, concerned that it could jeopardize security in more sensitive areas of the government, and it eventually faded, an early sign of Musk’s struggle to get traction.
But in the meantime, he continued issuing orders like thunderbolts.
One day in February, Musk posted “CFPB RIP,” plus an emoji of a tombstone. The headquarters of the Consumer Financial Protection Bureau, created after the Great Recession to protect Americans from fraud and deceptive practices, was shut down and employees were ordered to stop working.
Musk had already started gutting the US Agency for International Development, a pillar of the country’s foreign policy establishment and the world’s largest provider of humanitarian assistance.
“Spent the weekend feeding USAID into a wood chipper,” he bragged.
Thousands of contacts were cut off, pleasing conservatives who disliked the agency’s progressive initiatives on climate change and gay rights.
Musk rejected concerns about the loss of a crucial lifeline for impoverished people around the globe, saying, “no one has died.” However, children who once relied on American assistance perished from malnutrition, and the death toll is expected to increase.
The lawsuits began piling up. Sometimes workers got their jobs back, only to lose them again.
The Food and Drug Administration, which is responsible for ensuring the safety of everything from baby formula to biotech drugs, planned to lay off 3,500 employees. But again and again, the agency was forced to rehire people who were initially deemed expendable, including laboratory scientists, travel bookers and document specialists.
Commissioner Marty Makary, who started his job after many of the cuts took place, told attendees at a recent conference that “it was hard and my job is to make sure we can heal from that.”
Only 1,900 layoffs took place, but another 1,200 staffers took buyouts or early retirement. Experts fear the agency has lost much of its institutional knowledge and expertise in areas like vaccines, tobacco and food.
There are also concerns about safety on public lands. The National Park Service has been bleeding staff, leaving fewer people to maintain trails, clean restrooms and guide visitors. More cuts at the Forest Service could undermine efforts to prevent and fight wildfires.
The Environmental Protection Agency faces a broad overhaul, such as gutting the Office of Research and Development, which was responsible for improving air pollution monitoring and discovering harmful chemicals in drinking water.
Not even low-profile organizations were exempt. Trump ordered the downsizing of the US Institute of Peace, a nonprofit think tank created by Congress, and Musk’s team showed up to carry out his plan. The organizations’ leaders were deposed, then reinstated after a court battle.
Musk made little headway at the top sources of federal spending
The bulk of federal spending goes to health care programs like Medicaid and Medicare, plus Social Security and the military.
Unfortunately for Musk, all of those areas are politically sensitive and generally require congressional approval to make changes.
Thousands of civilian workers were pushed out at the Pentagon, and Defense Secretary Pete Hegseth is reducing the ranks of top generals and looking to consolidate various commands. A plan to downsize an office for testing and evaluating new weapons systems could save $300 million per year. Hegseth recently asked employees to submit one idea per week for cutting waste.




US President Donald Trump and Elon Musk (R) speak before departing the White House on his way to his South Florida home in Mar-a-Lago in Florida on March 14, 2025. (AFP)

However, the Pentagon budget would increase by $150 billion, for a total of more than $900 billion, under Trump’s spending proposal working its way through Congress. The money includes $25 billion to lay the groundwork for Trump’s “golden dome” missile defense program and $34 billion to expand the naval fleet with more shipbuilding.
Another $45 million is expected to be spent on a military parade on June 14, which is the 250th anniversary of the Army’s founding and Trump’s 79th birthday.
Musk also faced blowback for targeting Social Security, which provides monthly benefits to retirees and some children. He suggested that the popular program was “a Ponzi scheme” and the government could save between $500 billion and $700 billion by tackling waste and fraud.
However, his estimates were inflated. Social Security’s inspector general said there was only $71.8 billion in improper payments over eight years. Nor was there any evidence that millions of dead people were receiving benefits.
Changes to Social Security phone services, pitched as a way to eliminate opportunities for fraud, were walked back after an outcry from lawmakers and beneficiaries. But the agency could still shed 7,000 workers while closing some of its offices.
Musk’s popularity cratered even though Americans often agreed with his premise that the federal government is bloated and wasteful, according to polling from The Associated Press-NORC Center for Public Affairs Research.
Just 33 percent of US adults had a favorable view of Musk in April, down from 41 percent in December. In addition, 65 percent said Musk had too much influence over the federal government.
Musk talked of staggering savings but delivered modest results
During a campaign rally in October, Musk said he could find “at least $2 trillion” in spending cuts. In January, before Trump was inaugurated, he revised by saying, “if we try for $2 trillion, we’ve got a good shot at getting one.”
But in April, at a Cabinet meeting, Musk provided a different target. He was “excited to announce” that they could reach $150 billion in savings during the current fiscal year.
Whether that figure proves to be accurate is difficult to measure, especially because DOGE routinely inflated or mischaracterized its work. But it falls short of President Bill Clinton’s initiative three decades ago, which resulted in $136 billion in savings — the equivalent of more than $240 billion today.
Elaine Kamarck, a key figure in the Clinton administration, said they focused on making the government more responsive and updating antiquated internal procedures. The work took years.
“We went about it methodically, department by department,” she said. The effort also reduced the federal workforce by more than 400,000 employees.
However, Musk did little to seek insight from people who knew the inner workings of government.
“They made some changes without really knowing what they were doing,” said Alex Nowrasteh, vice president for economic and social policy studies for the libertarian think tank Cato Institute. He said there were “a lot of unforced errors.”
In the end, Nowrasteh said, “they set themselves up for failure.”


White House lays off thousands of US government workers, blaming shutdown

White House lays off thousands of US government workers, blaming shutdown
Updated 11 October 2025

White House lays off thousands of US government workers, blaming shutdown

White House lays off thousands of US government workers, blaming shutdown
  • Trump administration begins layoffs amid government shutdown

WASHINGTON: President Donald Trump on Friday blamed Democrats for his decision to lay off thousands of workers across the US government as he followed through on his threat to cut the federal workforce during the government shutdown.
Job cuts were under way at the Treasury Department, the US health agency, the Internal Revenue Service and the departments of education, commerce, and Homeland Security’s cybersecurity division, spokespeople said, but the total extent of the layoffs was not immediately clear. Roughly 300,000 federal civilian workers had already been set to leave their jobs this year due to a downsizing campaign initiated earlier this year by Trump.
“They started this thing,” Trump told reporters during an event in the Oval Office, calling the job cuts “Democrat-oriented.”
Trump’s Republicans hold majorities in both chambers of Congress, but need Democratic votes in the US Senate to pass any measure that would fund the government.
Democrats are holding out for an extension of health-insurance subsidies, arguing health costs will increase dramatically for many of the 24 million Americans who get their coverage through the Affordable Care Act.
Trump has repeatedly threatened to fire federal workers during the shutdown standoff, in its 10th day on Friday, and has suggested his administration will aim primarily at parts of the government championed by Democrats.
Trump has also ordered the freezing of at least $28 billion in infrastructure funds for New York, California and Illinois — all home to sizable populations of Democratic voters and critics of the administration.
The Justice Department said in a court filing more than 4,200 federal employees had gotten layoff notices at seven agencies, including more than 1,400 at the Treasury Department and at least 1,100 at the Department of Health and Human Services.
Democrats said they will not cave to Trump’s pressure tactics.
“Until Republicans get serious, they own this — every job lost, every family hurt, every service gutted is because of their decisions,” Senate Democratic Leader Chuck Schumer said.
Labor unions representing federal workers have sued to stop the layoffs, saying they would be illegal during a shutdown.
The administration said in a Friday court filing that the unions’ request should be denied because they lack the legal right to sue over federal personnel decisions.
A federal judge is due to hear the case on October 15.
The government is required by law to give workers 60 days’ notice ahead of any layoffs, though that can be shortened to 30 days.
Some Republicans objected to the layoffs, including Senator Susan Collins, the chair of the Senate Appropriations Committee.
“Regardless of whether federal employees have been working without pay or have been furloughed, their work is incredibly important to serving the public,” Collins said in a statement.
Earlier in the day, White House budget director Russell Vought wrote on social media that: “The RIFs had begun,” referring to so-called reductions in force. A spokesperson for the budget office characterized the cuts as “substantial,” without offering further details.
The announcement came on the same day that many federal workers were due to get reduced paychecks that do not include any pay for the days since the shutdown began. Hundreds of thousands have been ordered not to report to work, while others have been ordered to keep working without pay. The nation’s 2 million active-duty troops will miss their October 15 paycheck entirely if the shutdown is not resolved before then.
Employees across multiple divisions of the Department of Health and Human Services have received layoff notices, communications director Andrew Nixon said. The 78,000 workers at the sprawling agency monitor disease outbreaks, fund medical research, and perform a wide range of other health-related duties.
Nixon said the layoffs were targeted at agency staff who have been ordered not to work, but did not provide further details. Roughly 41 percent of agency staff have been furloughed.
Layoffs have also begun at the Treasury Department, according to a spokesperson who requested anonymity.
A labor union official, Thomas Huddleston of the American Federation of Government Employees, said in a court filing he had been told Treasury was preparing 1,300 layoff notices. Those layoffs could hit the tax-collecting Internal Revenue Service, which has been targeted for steep job cuts this year. Some 46 percent of the agency’s 78,000 employees were furloughed on Wednesday. Layoffs have also begun at the Department of Housing and Urban Development, the union said.
Officials also confirmed job cuts at the Education Department, which Trump has vowed to shutter completely, and the Commerce Department, which handles weather forecasting, economic data reports, and other tasks.
Other media outlets reported layoffs at the Environmental Protection Agency, the Department of Energy and the Department of Interior. Spokespeople at those agencies did not immediately respond to requests for comment.
The Department of Homeland Security said layoffs were taking place at the Cybersecurity and Infrastructure Security Agency, which incurred Trump’s wrath after the 2020 election when its director said there was no evidence voting systems were compromised. Trump falsely claims that he lost that election to Democrat Joe Biden due to voter fraud.
The Department of Transportation and the Federal Aviation Administration are not affected, according to a source familiar with the situation.


With flattery and warnings, Russia tries to revive ‘spirit of Alaska’ with US

With flattery and warnings, Russia tries to revive ‘spirit of Alaska’ with US
Updated 11 October 2025

With flattery and warnings, Russia tries to revive ‘spirit of Alaska’ with US

With flattery and warnings, Russia tries to revive ‘spirit of Alaska’ with US
  • Russia has tried playing good cop, bad cop — with officials at times appearing to threaten tough responses to US action and at others underlining shared values
  • On Friday, Putin praised Trump’s credentials as a potential Nobel Peace Prize laureate, and it sounded like music to Trump

MOSCOW: Two months after a smiling Donald Trump and Vladimir Putin shook hands at a military base in Alaska in what looked like the start of a US-Russia rapprochement, a top Russian diplomat has raised doubts that the “spirit of Alaska” is still alive.
For Russia, the Anchorage summit on August 15 had two goals: to persuade President Trump to lean on Ukraine and Europe to agree to a peace settlement favorable to Moscow, and to encourage a rapprochement in US-Russia ties.
Russian Deputy Foreign Minister Sergei Ryabkov said this week there had been scant progress on either front and “powerful momentum” had been lost. Moscow had signalled it was ready to rebuild ties but Washington had not reciprocated, he said.
“We have a certain edifice of relations that has cracked and is collapsing,” Ryabkov said. “Now the cracks have reached the foundation.”

Putin says complex issues require more study
After Ryabkov spoke, a Kremlin aide and Putin’s spokesman underlined that contacts with Washington continue, and the Russian leader sounded more optimistic than Ryabkov when asked about Ukraine and ties with the US on Friday.
“These are complex issues that require further consideration. But we remain committed to the discussion that took place in Anchorage,” Putin told a press conference.
His aide later told the Kommersant newspaper that Russia had agreed to unspecified concessions at the Alaska summit it would be ready to make if Trump got certain things from Ukraine and the Europeans.
Such a contrast in tone among senior officials is rare in Moscow and highlights the delicacy and sensitivity of the twin-track approach Russia is taking — combining flattery and warnings to adapt to diplomatic reversals since the summit.

Trump’s frustration 
While a Trump initiative has raised hopes of peace in Gaza, he is frustrated by his failure to broker an end to fighting in Ukraine and has soured, at least publicly, on Russia.
There is no new Trump-Putin meeting on the agenda, no date has been set for the next talks on improving ties, and Washington, without an ambassador in Moscow since June, has not sought Russia’s approval to send a successor.
Trump has spoken of possibly supplying Tomahawk cruise missiles to Ukraine, hitting a nerve with Putin, who said it would destroy what is left of US-Russia ties.
Trump has also said he wants Putin and Ukrainian President Volodymyr Zelensky to hold direct talks, but there appears no near-term prospect of that happening as the tempo of the war increases.
In a rhetorical U-turn, Trump has suggested Ukraine could win back all its lost territory, while dismissing Russia as “a paper tiger,” a snipe shrugged off by Moscow.

Music to Trump's ears
In response, Russia has tried playing good cop, bad cop — with officials at times appearing to threaten tough responses to US action and at others underlining shared values.
Putin offered to voluntarily maintain limits on deployed strategic nuclear weapons set out in the last arms control treaty with the US once it expires next year if Washington does the same.
Trump said “it sounds like a good idea,” but there has been no formal US response.
Putin on Friday praised Trump’s credentials as a potential Nobel Peace Prize laureate, saying his efforts to bring peace to Ukraine were sincere and that his Middle East mediation initiative was already an achievement and would be “a historic event” if he was able to see it through to the end.

 

Trump took to social media to show he had noted the praise: “Thank you to President Putin!” he wrote on Truth Social.
Melania Trump also disclosed on Friday that she had secured an open line of communication with Putin about repatriating Ukrainian children caught up in the war, and that some had been returned to their families with more to be reunited soon.
Kirill Dmitriev, Putin’s presidential envoy, said Moscow appreciated Melania Trump’s “humanitarian leadership.”
At a foreign policy conference this month, Putin also went out of his way to make a series of US-focused statements likely to appeal to Trump.
Putin praised Michael Gloss, the son of a CIA official killed in Ukraine fighting on Russia’s side, saying he represented “the core of the MAGA movement, which supports President Trump.”
He also condemned the murder of Trump ally Charlie Kirk, saying Kirk had defended the “traditional values” which he said Gloss and Russian soldiers in Ukraine were giving their lives to defend.

Pushback, warnings and disappointment
But warnings have continued, and pushback against Trump’s talk of supplying Tomahawk missiles to Ukraine was immediate.
Putin said such a step would require the direct involvement of US military personnel, destroy bilateral relations and usher in a new stage of escalation.
Andrei Kartapolov, who heads Russian parliament’s defense committee, said Moscow would shoot down Tomahawk missiles and bomb their launch sites if the US supplied them, and find a way to retaliate against Washington that hurts.
In other terse comments, Ryabkov said Russia would quickly carry out a nuclear test if the US did the same, and that Moscow would “get by” if Washington did not take up Putin’s nuclear arms control offer.
Ryabkov also backed off a Russian offer to discuss the fate of US nuclear fuel at a nuclear plant Moscow controls in southern Ukraine, and spoke of how Russia was withdrawing from an agreement with the US to destroy weapons-grade plutonium.
“After the summit in Alaska, there was hope that Trump was ready to continue dialogue with Russia and take our interests into account,” wrote Andrei Baranov, a commentator for pro-Kremlin newspaper Komsomolskaya Pravda.
“Donald has now thoroughly disappointed us with his trademark inconsistency.”


Magnitude 7.8 quake strikes off tip of South America

Magnitude 7.8 quake strikes off tip of South America
Updated 11 October 2025

Magnitude 7.8 quake strikes off tip of South America

Magnitude 7.8 quake strikes off tip of South America

SANTIAGO, Chile: A magnitude 7.8 earthquake struck the Drake Passage, a stretch of water located between the southern tip of South America and Antarctica on Friday, prompting emergency authorities to issue a tsunami warning.

The earthquake struck just before 5:30 p.m. local time (2030 GMT) at a depth estimated at 10 km. the United States Geological Survey said.

Chile’s SHOA marine authority and the Pacific Tsunami Warning Center issued a precautionary tsunami alert for the country’s Antarctic territory and authorities asked people to evacuate the beaches.

The Pacific Tsunami Warning Center and Chile’s SHOA marine authority withdrew the warnings around an hour later.

The deep waters and rough, windy seas of the Drake Passage mean tsunami waves are less likely to intensify before hitting land.


Macron reappoints Sebastien Lecornu as France’s PM

Macron reappoints Sebastien Lecornu as France’s PM
Updated 11 October 2025

Macron reappoints Sebastien Lecornu as France’s PM

Macron reappoints Sebastien Lecornu as France’s PM
  • Lecornu on X said after the Elysee announcement that he had accepted the mission “out of duty.”
  • Macron, facing the worst domestic crisis since the 2017 start of his presidency, has yet to address the public

PARIS: French President Emmanuel Macron on Friday reappointed his outgoing prime minister, Sebastien Lecornu, back into that position, just four days after Lecornu gave his resignation.
Both allies and the opposition had been hoping for a fresh face in government to help end months of paralysis over an austerity budget, but Macron instead reappointed Lecornu, 39.
“The president of the republic has nominated Mr.Sebastien Lecornu as prime minister and has tasked him with forming a government,” the Elysee Palace said.
France has been mired in political deadlock ever since Macron gambled last year on snap polls that he hoped would consolidate power — but ended instead in a hung parliament and more seats for the far right.
Lecornu on X said after the Elysee announcement that he had accepted the mission “out of duty.”
“We must end the political crisis,” he said.
He pledged to do “everything possible” to give France a budget by the end of the year and added that restoring the public finances remained “a priority for our future.”
Macron, facing the worst domestic crisis since the 2017 start of his presidency, has yet to address the public.
Lecornu’s reappointment was met with indignation.
Far-right National Rally party leader Jordan Bardella called it a “bad joke” and pledged to immediately seek to vote out the new cabinet.
A spokesman for the hard left said Lecornu’s return was a huge “two fingers to the French people.”
The Socialists, a swing group in parliament, said they had “no deal” with Lecornu and would oust his government if he did not agree to suspend a 2023 pensions reform that increased retirement age from 62 to 64.
The French parliament toppled Lecornu’s two predecessors in a standoff over cost-cutting measures.

No ‘presidential ambitions’ 

Lecornu, a Macron loyalist who previously served as defense minister, after he quit agreed to stay on for two extra days to talk to all political parties.
He told French television late Wednesday that he believed a revised draft budget for 2026 could be put forward on Monday, which would meet the deadline for its approval by the end of the year.
But it was not immediately clear if this would require a fresh cabinet line-up to be announced by the end of the weekend.
He warned on Friday that all those who wanted to join his government “must commit to setting aside presidential ambitions” for 2027 elections.
Lecornu’s suggested list of ministers last Sunday sparked criticism that it did not break enough with the past, and he suggested on Wednesday that it should include technocrats.
The escalating crisis has seen former allies criticize the president.
In an unprecedented move, former premier Edouard Philippe, a contender in the next presidential polls, earlier this week said Macron himself should step down after a budget was passed.
But Macron has always insisted he would stay until the end of his term.
The far-right National Rally senses its best-ever chance of winning power in the 2027 presidential vote, with Macron having served the maximum two terms.
Its three-time presidential candidate Marine Le Pen has been barred from running after being convicted in a corruption case, but her 30-year-old lieutenant Bardella could be a candidate instead.
 


Trump announces new 100 percent China tariff, threatens to scrap Xi talks

Trump announces new 100 percent China tariff, threatens to scrap Xi talks
Updated 11 October 2025

Trump announces new 100 percent China tariff, threatens to scrap Xi talks

Trump announces new 100 percent China tariff, threatens to scrap Xi talks
  • “Some very strange things are happening in China! They are becoming very hostile,” Trump said
  • Trump was reacting to China's notification to countries around the world detailing export controls on rare earth minerals
  • Stock markets fell as the simmering trade war reignited, with the Nasdaq down 3.6 percent and the S&P 500 down 2.7 percent

WASHINGTON: US President Donald Trump announced an additional 100 percent tariff on China Friday and threatened to cancel a summit with Xi Jinping, reigniting his trade war with Beijing in a row over export curbs on rare earth minerals.
Trump said the extra levies, plus US export controls on “any and all critical software,” would come into effect from November 1 in retaliation for what he called Beijing’s “extraordinarily aggressive” moves.
“It is impossible to believe that China would have taken such an action, but they have, and the rest is History,” he said on Truth Social.
Stock markets fell as the simmering trade war between the United States and China reignited, with the Nasdaq down 3.6 percent and the S&P 500 down 2.7 percent.

Chinese goods currently face US tariffs of 30 percent under tariffs that Trump brought in while accusing Beijing of aiding in the fentanyl trade, and over alleged unfair practices.
China’s retaliatory tariffs are currently at 10 percent.
Trump had threatened the tariffs hours earlier in a lengthy surprise post on his Truth Social network that said China had sent letters to countries around the world detailing export controls on rare earth minerals.
Rare earth elements are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology. China dominates global production and processing of these materials.
“There is no way that China should be allowed to hold the World ‘captive,’” Trump wrote, describing China’s stance as “very hostile.”

 

The US president then called into question his plans to meet Chinese president Xi at the Asia-Pacific Economic Cooperation (APEC) summit later this month.
It was to be the first encounter between the leaders of the world’s two largest economies since Trump returned to power in January.
“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” he wrote.
Trump later told reporters in the Oval Office that he hadn’t canceled the meeting.
“I haven’t canceled, but I don’t know that we’re going to have it. But I’m going to be there regardless, so I would assume we might have it,” he said.

‘Lying in wait’ 

On Thursday, the Chinese government restricted access to the rare earths ahead of the scheduled Trump-Xi meeting. Beijing would require foreign companies to get special approval for shipping the metallic elements aboard. It also announced permitting requirements on exports of technologies used in the mining, smelting and recycling of rare earths, adding that any export requests for products used in military goods would be rejected.

The US president said he did not understand why China was choosing to act now. “Some very strange things are happening in China! ” he said.

Trump said that China is “becoming very hostile” and that it’s holding the world “captive” by restricting access to the metals and magnets used in electronics, computer chips, lasers, jet engines and other technologies.

He said other countries had contacted the United States expressing anger over China’s “great Trade hostility, which came out of nowhere.”

He also accused Beijing of “lying in wait” despite what he characterized as six months of good relations, which has notably seen progress on bringing TikTok’s US operations under American control as required by a law passed by Congress last year.

A container ship sits docked at the Port of Oakland on October 10, 2025 in Oakland, California. US President Donald Trump has impose da massive increase of tariffs on Chinese imports in response to China's announcement of new export controls on rare earths. (Getty Images via AFP)

“I have not spoken to President Xi because there was no reason to do so,” Trump posted. “This was a real surprise, not only to me, but to all the Leaders of the Free World.”
The US president said the move on rare earths was “especially inappropriate” given the announcement of a ceasefire between Israel and Hamas in Gaza so that the remaining hostages from Hamas’ Oct. 7, 2023, attack can be released. He raised the possibility without evidence that China was trying to steal the moment from him for his role in the ceasefire, saying on social media, “I wonder if that timing was coincidental?”

His outburst comes just weeks after he had spoken of the importance of meeting Xi at the APEC summit and said that he would travel to China next year.
Washington and Beijing engaged in a tit-for-tat tariffs war earlier this year that threatened to effectively halt trade between the world’s two largest economies.
Both sides eventually agreed to de-escalate tensions but the truce has been shaky.
Trump said last week that he would push Xi on US soybean purchases as American farmers, a key voting demographic in his 2024 election win, grapple with fallout from his trade wars.
China had said earlier Friday that it would impose “special port fees” on ships operated by and built in the United States after Washington announced charges for Chinese-linked ships in April.
In a further development, the US communications watchdog said it had successfully managed to get “millions” of listings for banned Chinese items removed from commerce platforms.
“The Communist Party of China is engaged in a multi-prong effort to insert insecure devices into Americans’ homes and businesses,” Brendan Carr, head of the Federal Communications Commission, said on X.

Trump’s trade war
The outbreak of a tariff-fueled trade war between the US and China initially caused the world economy to shudder over the possibility of global commerce collapsing. Trump imposed tariffs totaling 145 percent on Chinese goods, with China responding with import taxes of 125 percent on American products.
The taxes were so high as to effectively be a blockade on trade between the countries. That led to negotiations that reduced the tariff charged by the US government to 30 percent and the rate imposed by China to 10 percent so that further talks could take place. But differences continue over America’s access to rare earths from China, US restrictions on China’s ability to import advanced computer chips, sales of American-grown soybeans and a series of tit-for-tat port fees being levied by both countries starting on Tuesday.
There is already a backlog of export license applications from Beijing’s previous round of export controls on rare earth elements, and the latest announcements “add further complexity to the global supply chain of rare earth elements,” the European Union Chamber of Commerce in China said in a statement.
Just what Trump’s threat meant was open to interpretation, as it could simply be an attempt to gain some leverage under the belief that China has overplayed its hand or an ominous sign of trade tensions leading to potentially destructive increase in tariff rates.
How analysts see moves by US and China
Cole McFaul, a research fellow at Georgetown University’s Center for Security and Emerging Technology, said that Trump appeared in his post to be readying for talks on the possibility that China had overplayed its hand. By contrast, China sees itself as having come out ahead when the two countries have engaged in talks.
“From Beijing’s point of view, they’re in a moment where they’re feeling a lot of confidence about their ability to handle the Trump administration,” McFaul said. “Their impression is they’ve come to the negotiating table and extracted key concessions.”
Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies, a think tank, said Trump’s post could “mark the beginning of the end of the tariff truce” that had lowered the tax rates charged by both countries.
It’s still unclear how Trump intends to follow through on his threats and how China plans to respond.
“But the risk is clear: Mutually assured disruption between the two sides is no longer a metaphor,” Singleton said. “Both sides are reaching for their economic weapons at the same time, and neither seems willing to back down.”