WASHINGTON—President Donald Trump on Aug. 7 said his tough stance on China’s economic and trade policies would ultimately benefit the American economy, even as Beijing signaled it could strike back by curbing sales of chemicals known as rare earths that are used in everything from iPhones to military equipment.
The U.S.-China trade war escalated sharply in recent days after Washington on Monday branded Beijing a currency manipulator for the first time since 1994, and said it would impose 10 percent tariffs on the remaining $300 billion in Chinese imports, starting on Sept. 1.
