President Trump issued a warning to China today, threatening to impose tariffs on rare earth elements in retaliation for China's recent trade policies. Rare earth elements are crucial components in the production of many high-tech products, including smartphones and electric cars.

The threat comes amidst escalating tensions between the two economic giants, with negotiations for a trade deal at an impasse. Trump's latest move has sent shockwaves through the global markets, with stocks plummeting in response to the uncertainty.

Experts warn that a tariff on rare earth elements could have far-reaching consequences, disrupting the supply chains of countless industries. China currently dominates the market for these valuable minerals, giving them significant leverage in trade negotiations.

While the Chinese government has yet to respond to Trump's threat, analysts predict that the situation could worsen if both sides refuse to compromise. With the global economy already on shaky ground, a trade war between the world's two largest economies could have dire consequences for all.