Donald Trump has threatened to impose 100% tariffs on Chinese imports starting 1 November — or sooner — accusing Beijing of “very hostile” actions to restrict rare-earth exports vital to US industries.
The move reignited fears of a renewed trade war between the world’s two largest economies, sending Wall Street tumbling. The S&P 500 dropped 2.7%, the Nasdaq fell 3.6%, and tech giant Nvidia lost nearly 5% of its value.
Relations between Washington and Beijing had recently improved after both sides eased earlier tariffs, but tensions flared again after China expanded export controls on five additional rare-earth materials.
“I never thought it would come to this,” Trump wrote on Truth Social. “But ultimately, it will be a very good thing for the U.S.A.”
He also announced plans to restrict exports of “any and all critical software” from the US, suggesting further countermeasures could follow.
China produces over 90% of the world’s processed rare earths, essential for electric vehicles, aircraft, and advanced electronics. Its latest restrictions triggered global supply fears.
Trump hinted a planned meeting with Xi Jinping in South Korea may now be off, saying there’s “no reason” to meet.
The president’s renewed tariff threat marks another sharp shift in policy, only months after describing relations with China as “excellent.”
While Trump insists tariffs will strengthen the US economy, economists warn they could drive up prices for consumers already facing renewed inflation.
