'Economically hostile act': Trump threatens to stop cooking oil import from China over soybeans

US President Donald Trump

US President Donald Trump warned that the United States might retaliate against Beijing by halting purchases of cooking oil from China, following what he called an aggressive move by China to stop buying American soybeans.

On Truth Social, he wrote: "We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution." He also accused China of acting against American interests by blocking soybean imports, saying it was causing hardship for US farmers.

China’s suspension of soybean buying, Trump said, was an "economically hostile act." He argued that Washington has "to be careful with China" and added, "I have a great relationship with President Xi (Jinping), but sometimes it gets testy, because China likes to take advantage of people. Where the punches are thrown, you got to put up the blocks."

Despite the sharp tone online, Trump appeared more measured when speaking to reporters, reported AFP. "We have a fair relationship with China, and I think it'll be fine. And if it's not, that's okay too," he said at the White House, hinting at a possible easing of tensions.

However, recent developments suggest renewed friction between the two economic giants, reported AFP. Trade duties have surged to triple-digit levels in some cases during Trump’s second term. After Beijing introduced fresh restrictions on rare earth exports, Trump said he was preparing an additional 100-percent tariff on Chinese goods starting November 1.

US Trade Representative Jamieson Greer told CNBC this timetable might be moved up. "A lot depends on what the Chinese do," he said, claiming Beijing had "chosen to make this major escalation."

Treasury Secretary Scott Bessent, in an interview with the Financial Times, criticised China’s new export controls. He argued Beijing aimed to disrupt the global economy, saying: "This is a sign of how weak their economy is, and they want to pull everybody else down with them."

China, the world’s top rare earth producer, hit back by accusing Washington of "double standards" after Trump threatened fresh tariffs. Over the weekend, tensions intensified after Trump indicated he might cancel a meeting with Xi at the upcoming Asia-Pacific Economic Cooperation summit. In response, China declared it was ready to "fight to the end" in a prolonged trade confrontation.

Meanwhile, US imports of animal fats, greases, and processed oils -- including used cooking oil -- have sharply risen in recent years due to domestic growth in biomass-based diesel production, according to American government figures.

With inputs from AFP