President Donald Trump has threatened to impose 100% tariffs on Chinese goods starting 1 November — or sooner — accusing Beijing of “very hostile” actions after it tightened controls on rare-earth exports.
The move reignited fears of a renewed trade war between the world’s two largest economies, sending US markets tumbling. The S&P 500 fell 2.7%, the Dow dropped 1.9%, and tech stocks were hit hardest, with Nvidia down nearly 5%.
“Perhaps the time has come,” Trump wrote on Truth Social, calling the tariffs “painful but good for the U.S.A.” He added that Washington would also introduce export controls on “any and all critical software.”
The announcement came just months after both nations eased earlier tariff hikes following tense negotiations. US tariffs had dropped to 30%, while China’s duties stood at 10%.
Beijing’s latest restrictions add five more materials to its rare-earth export control list, intensifying global supply concerns. China produces more than 90% of the world’s processed rare earths, essential for electric vehicles and aircraft.
Trump accused China of trying to “hold the world captive” with its dominance in rare-earth markets. He also cast doubt on a planned meeting with Xi Jinping, saying there was “no reason” to proceed.
Economists warn the threatened tariffs could drive up prices for US consumers, even as Trump continues to insist inflation “no longer exists.”
