Donald Trump has warned he will impose 100% tariffs on Chinese goods from 1 November – or sooner – accusing Beijing of “very hostile” moves to restrict rare-earth exports critical to US industries.
The threat marks a sharp escalation in tensions between the world’s two largest economies, just months after both sides agreed to ease tariffs.
Posting on Truth Social, Trump wrote: “Perhaps the time has come. It will be painful, but good for the U.S.A. in the end.” He said the White House is also preparing new export controls on “any and all critical software.”
Beijing recently expanded its restrictions on rare-earth exports, adding five new materials to its control list. China produces more than 90% of the world’s supply of these vital elements used in electronics, aircraft, and electric vehicles.
Markets reacted sharply to Trump’s comments. The S&P 500 fell 2.7%, the Dow dropped 1.9%, and the Nasdaq sank 3.6%. Tech giant Nvidia lost nearly 5% of its value, and the FTSE 100 fell 0.9% in London.
A planned meeting between Trump and Chinese President Xi Jinping later this month now appears unlikely. “There seems to be no reason,” Trump said.
The president’s renewed tariff threat comes after months of relative calm. Earlier this year, US tariffs peaked at 145% before falling to 30% after negotiations; China’s duties dropped from 125% to 10%.
Trump claimed China’s export curbs were part of a “sinister and hostile move” to control global resources. “There’s no way China should be allowed to hold the world captive,” he said.
The proposed tariffs would mark another major shift in US trade policy — one that could further strain global markets already nervous about inflation and supply chain shocks.
