US President Donald Trump has escalated tensions with China by threatening a significant increase in tariffs on Chinese goods, following Beijing's recent export controls on rare-earth minerals. This move not only jeopardizes an upcoming meeting with Chinese leader Xi Jinping but also sent shockwaves through global markets, causing US stocks to plummet as investors sought refuge in bonds. The implications of these tariffs could lead to a further deterioration of US-China relations, impacting trade and economic stability worldwide.

Stocks took a significant hit as President Trump threatened a 'massive increase' in tariffs on China, escalating trade tensions that have investors worried. This turmoil not only affected the stock market but also led to declines in oil and cryptocurrency prices, prompting many to seek refuge in safer investments like Treasuries and gold. The situation is crucial as it highlights the fragility of global markets and the potential for further economic instability.