President Donald Trump Threatens 100% Tariffs on China imports starting November 1 or even sooner accusing Beijing of “very hostile” moves to restrict exports of critical rare-earth materials essential for U.S. manufacturing.
The warning marks a sharp escalation in trade tensions between the world’s two largest economies, just months after relations had seemingly improved. Earlier this year, Trump agreed to ease steep tariffs on Chinese goods following a series of negotiations, but that fragile truce now appears to be collapsing.
Trump Threatens 100% Tariffs on China “Perhaps, as with all things, the time has come,” Trump wrote on Truth Social, adding that “though potentially painful, it will be a very good thing in the end for the U.S.A.” He also announced new U.S. export controls on “any and all critical software”, signaling a broader economic offensive against China.
Trump’s remarks sent Wall Street tumbling on Friday. The S&P 500 dropped 2.7% its steepest fall since April while the Dow Jones fell 1.9% and the Nasdaq Composite slid 3.6%. Tech giant Nvidia, heavily dependent on Chinese markets, lost nearly 5% of its value.
Trump Threatens 100% Tariffs on China
The renewed tariff threat came after Beijing expanded its export controls on rare earths earlier this week, adding five new materials to its restricted list. China produces more than 90% of the world’s processed rare earths, which are vital for industries such as electric vehicles, semiconductors, and aircraft engines.
“I have always felt they’ve been lying in wait,” Trump said, accusing China of using its dominance over rare-earth supplies as a geopolitical weapon. “There is no way China should be allowed to hold the world captive.”
The latest escalation casts doubt on a planned meeting between Trump and Chinese President Xi Jinping later this month in South Korea. Trump suggested the summit might not take place, saying there was “no reason” to meet given China’s “sinister and hostile moves.”
Trump Threatens 100% Tariffs on China, which he claims will boost domestic production and generate trillions in federal revenue. Economists, however, warn that such tariffs often raise costs for American consumers and risk reigniting inflation.
Global markets reacted nervously, with the FTSE 100 down 0.9% in London and similar declines across Asia and Europe, as investors braced for the possibility of a new U.S.–China trade war.
