President Donald Trump has warned of imposing additional US tariffs of 100% on Chinese goods starting November 1 or sooner, citing “very hostile” moves by Beijing to restrict exports of rare earths critical for American industries.
The announcement came after China expanded its export controls on rare earths, materials essential for manufacturing electric vehicles, plane engines, and other high-tech products. Trump also signaled that the US could introduce new export controls on critical software.
Markets reacted sharply to the threat. The S&P 500 dropped 2.7%, the Dow Jones fell 1.9%, and the Nasdaq sank 3.6%, with tech stocks such as Nvidia experiencing significant losses. Global markets, including the FTSE 100, also saw declines.
Trump framed the move as necessary to counter China’s monopoly over rare-earth materials, warning that allowing such control posed a risk to global supply chains. He emphasized that the US holds stronger monopoly positions in critical areas and sees tariffs as a tool to strengthen the domestic economy.
A planned meeting with Chinese President Xi Jinping in South Korea later this month may now be in doubt, according to Trump. The escalation comes after a temporary easing of trade tensions earlier this year, when tariffs between the two nations had been reduced following diplomatic negotiations.
