Donald Trump has warned he may impose additional 100% tariffs on Chinese imports as early as 1 November, accusing Beijing of making “very hostile” moves by tightening restrictions on rare-earth exports vital to US industries.
The announcement rattled financial markets. US stocks fell sharply, with the S&P 500 down 2.7%, the Nasdaq dropping 3.6%, and the Dow Jones losing 1.9%. Nvidia shares slid nearly 5%, while the FTSE 100 dropped 0.9% in London.
Relations between Washington and Beijing had appeared to stabilize over the summer, after both sides agreed to scale back earlier tariff hikes. US duties on Chinese goods had been reduced to 30%, with China lowering its tariffs to 10%.
However, Trump indicated the détente could quickly unravel. He suggested tariffs could be raised “over and above” current levels and implemented sooner if China retaliates. He also announced forthcoming export controls on “any and all critical software.”
Posting on Truth Social, Trump said:
“I never thought it would come to this … Ultimately, though potentially painful, it will be a very good thing for the USA.”
He hinted that his planned meeting with Chinese President Xi Jinping in South Korea later this month may be called off, saying there was “no reason” to proceed.
Rare Earth Tensions
China produces over 90% of the world’s processed rare earths and magnets—materials essential for electric vehicles, aircraft engines, and other advanced manufacturing.
This week, Beijing expanded its export control list, adding five more rare-earth materials. A similar move in April led to global supply shortages before being eased through diplomatic negotiations.
Trump accused China of seeking to “hold the world captive” by building a near monopoly over these elements, calling the move “sinister and hostile.” He insisted the US holds stronger monopoly positions in other sectors.
A Risk of Renewed Trade War
Trump’s tariff strategy remains central to his economic agenda. He argues that significantly higher duties on imports will bolster domestic industry and generate substantial federal revenue. Economists, however, warn such measures typically raise consumer prices—despite Trump’s repeated claims that inflation is no longer an issue in the US.
Just months ago, Trump had praised the “excellent” state of US–China relations after tariff reduction talks. Earlier in the year, US tariffs on Chinese goods had peaked at 145%, with Beijing responding by lifting its own to 125%.
The president’s latest comments raise the prospect of a renewed and potentially volatile trade confrontation between the world’s two largest economies.
Source: The Guardian
The announcement rattled financial markets. US stocks fell sharply, with the S&P 500 down 2.7%, the Nasdaq dropping 3.6%, and the Dow Jones losing 1.9%. Nvidia shares slid nearly 5%, while the FTSE 100 dropped 0.9% in London.
Relations between Washington and Beijing had appeared to stabilize over the summer, after both sides agreed to scale back earlier tariff hikes. US duties on Chinese goods had been reduced to 30%, with China lowering its tariffs to 10%.
However, Trump indicated the détente could quickly unravel. He suggested tariffs could be raised “over and above” current levels and implemented sooner if China retaliates. He also announced forthcoming export controls on “any and all critical software.”
Posting on Truth Social, Trump said:
“I never thought it would come to this … Ultimately, though potentially painful, it will be a very good thing for the USA.”
He hinted that his planned meeting with Chinese President Xi Jinping in South Korea later this month may be called off, saying there was “no reason” to proceed.
Rare Earth Tensions
China produces over 90% of the world’s processed rare earths and magnets—materials essential for electric vehicles, aircraft engines, and other advanced manufacturing.
This week, Beijing expanded its export control list, adding five more rare-earth materials. A similar move in April led to global supply shortages before being eased through diplomatic negotiations.
Trump accused China of seeking to “hold the world captive” by building a near monopoly over these elements, calling the move “sinister and hostile.” He insisted the US holds stronger monopoly positions in other sectors.
A Risk of Renewed Trade War
Trump’s tariff strategy remains central to his economic agenda. He argues that significantly higher duties on imports will bolster domestic industry and generate substantial federal revenue. Economists, however, warn such measures typically raise consumer prices—despite Trump’s repeated claims that inflation is no longer an issue in the US.
Just months ago, Trump had praised the “excellent” state of US–China relations after tariff reduction talks. Earlier in the year, US tariffs on Chinese goods had peaked at 145%, with Beijing responding by lifting its own to 125%.
The president’s latest comments raise the prospect of a renewed and potentially volatile trade confrontation between the world’s two largest economies.
Source: The Guardian