United States President, Donald Trump, has introduced a new and ominous rationale for his escalating tariffs, asserting that ramping up domestic production is essential for national security, particularly in times of war.
Trump’s ongoing trade measures, aimed at curbing foreign imports and boosting U.S.-based manufacturing, have raised fears of a looming recession.
But the president, speaking aboard Air Force One on Sunday, emphasized the need for the U.S. to be self-sufficient — particularly when it comes to critical sectors like pharmaceuticals.
“We’re going to have our drugs made in the United States so that in case of war, in case of whatever, we’re not relying on China and various other countries, which is not a good idea,” he said, suggesting more tariffs could be on the horizon.
While Trump hinted at further duties, Chinese President Xi Jinping issued his own caution during a visit to Vietnam, part of a broader tour of Southeast Asia aimed at strengthening regional alliances and finding a path forward amid the trade standoff.
“There are no winners in a trade war, or a tariff war,” Xi wrote in a joint editorial published by official Chinese and Vietnamese media. “Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.”
He further warned, “Trade war and tariff war will produce no winner, and protectionism will lead nowhere.”
Following his stop in Vietnam, Xi is scheduled to visit Malaysia and Cambodia, continuing diplomatic efforts in the face of Washington’s aggressive trade posture.
China has remained a primary target in Trump’s strategy, which currently includes a 145 percent import tax on various Chinese products — despite a temporary 90-day freeze on certain reciprocal tariffs.
China responded by halting exports of key rare earth minerals and magnets, essential materials in industries such as automotive, semiconductors, and aerospace.
The move has sparked concern across American manufacturing sectors, especially auto factories that rely on those components for electric motors.
Trump’s chief economic adviser, Kevin Hassett, acknowledged the risks during comments outside the White House. “They’re concerning. And we’re thinking about all the options right now,” he said. “Rare earths are a part of lots of the economy. It’s a little bit of the value add to the US economy, but a crucial part of the value added.”
Hassett added that the administration is working with small businesses affected by the tariffs to help them secure alternative suppliers.
“The officials understand their concerns and are thinking about how best to address them, including by finding other suppliers that are not on the current list that China is on,” he said.
China has dominated the global rare earth industry, producing 99 percent of the world’s heavy rare earth metals until 2023. It also manufactures around 90 percent of the nearly 200,000 tons of high-powered rare earth magnets used annually in advanced technologies.
“The White House is concerned about China. Period,” Hassett emphasized.
Further tariffs, particularly targeting semiconductors, appear imminent. Trump confirmed Sunday that new duties in that sector are coming “in the very near future,” though he indicated he may show some leeway for consumer electronics.
“The tariffs will be in place in the not-too-distant future,” Trump stated, but added, “That’s going to be announced very soon, and we’ll be discussing it, but we’ll also talk to companies. You know, you have to show a certain flexibility. Nobody should be so rigid.”
As markets opened slightly higher Monday amid news that smartphones, computers, and memory chips may be temporarily spared from the tariffs, Trump reiterated that such products could still be included down the line, depending on negotiations.
Amid this uncertainty, corporate America is growing increasingly uneasy. A recent survey by industry group Chief Executive found that 62 percent of over 300 CEOs believe a recession or economic downturn is likely within six months, a notable jump from 48 percent just one month earlier.
Founder of the hedge fund giant Bridgewater Associates, Ray Dalio, echoed these concerns on NBC’s Meet the Press, stating, “Right now, we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.”
