Trump Launches Additional 100% Tariff on Chinese Imports/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump has threatened to impose a 100% tariff on all Chinese imports by November 1, citing new Chinese export restrictions on rare earth minerals. The move could reignite a full-scale trade war between the U.S. and China, impacting global supply chains and economic stability. Trump also proposed limiting U.S. tech exports in retaliation.
U.S.-China Trade Tensions Quick Looks
- Trump threatens 100% tariff on Chinese goods starting Nov. 1 or sooner
- Response to China’s new export restrictions on rare earth minerals
- Trump may restrict U.S. software exports as retaliation
- S&P 500 dropped 2.7%, worst day since April
- Trump-Xi meeting now uncertain, planned during South Korea trip
- Analysts warn of global economic disruption if tariffs proceed
- China dominates rare earth market, 70% mining, 93% magnet production
- Beijing’s move seen as retaliation for U.S. sanctions and port fees
- Trump accuses China of becoming “very hostile”
- Experts say there’s still room for de-escalation before deadline
Deep Look: Trump Threatens 100% Tariff on Chinese Imports, Tech Export Limits Amid Renewed Trade Tensions
WASHINGTON, D.C. — President Donald Trump on Friday threatened to impose a 100% tariff on all Chinese imports by November 1, potentially reigniting a U.S.-China trade war that could shake global markets and escalate economic tensions between the world’s two largest economies.
The announcement follows China’s abrupt decision to tighten export controls on rare earth minerals, critical to high-tech and defense applications. Trump characterized China’s move as “shocking” and “hostile,” claiming it leaves the world “captive” to Beijing’s economic influence.
“There seems to be no reason to meet with President Xi,” Trump said on social media, casting doubt on a planned face-to-face meeting during his upcoming visit to South Korea.
Later in the Oval Office, Trump clarified that the meeting hadn’t been canceled but added, “I don’t know that we’re going to have it… That’s why I made it Nov. 1 — we’ll see what happens.”
Why Trump Is Threatening New Tariffs
The threat comes after Beijing’s Thursday announcement that it would require foreign companies to obtain special licenses to export rare earth minerals and related technologies used in mining, smelting, and recycling. Exports tied to military applications would be automatically rejected.
These rare earth elements are vital for producing:
- Computer chips
- Smartphones
- Lasers
- Jet engines
- Electric vehicles
- U.S. defense systems
Trump responded with a sweeping counter-threat:
“Starting November 1st, 2025 (or sooner), the United States of America will impose a Tariff of 100% on China, over and above any current tariffs,” Trump wrote online.
He also hinted at restricting U.S. tech exports, including “critical software” from American companies — a potential blow to the tech sector and global innovation chains.
Market Fallout and Economic Risks
Markets reacted swiftly. The S&P 500 dropped 2.7%, its worst day since April, when Trump previously floated similar tariff increases. At that time, fears of a global recession intensified before the administration backed down.
Although Trump’s threat this time is definitive, he is known for using aggressive posturing as a negotiation tactic — prompting the Financial Times to coin the “TACO trade,” short for “Trump Always Chickens Out.”
Still, the economic stakes are high. U.S. businesses already pay up to 30% in tariffs on Chinese imports, and doubling that to 100% would likely:
- Increase inflation
- Disrupt supply chains
- Slow GDP growth
- Strain consumer spending
It also risks backfiring politically, as rising costs could collide with a fragile job market and the lingering effects of the federal government shutdown.
Background: Fragile Trade Talks and Geopolitical Flashpoints
The U.S. and China had previously agreed to scale back tariffs after negotiations in Switzerland and the UK, but Beijing’s rare earth restrictions are seen as retaliation for:
- U.S. sanctions on Chinese tech companies
- Planned U.S. port fees targeting Chinese vessels
- Chip import restrictions
According to the European Union Chamber of Commerce in China, the new restrictions create “further complexity to the global supply chain” of rare earth elements.
In addition to mineral and tech disputes, other flashpoints include:
- Sales of U.S. soybeans
- Mutual tariffs on port usage
- Access to semiconductors and advanced manufacturing tools
Global Reactions and Expert Analysis
Sun Yun, Director of the China Program at the Stimson Center, said China’s reaction was “disproportional” but not without justification.
“De-escalation will have to be mutual,” she said. “There’s still room for maneuver, especially on implementation.”
Gracelin Baskaran, of the Center for Strategic and International Studies, noted that China holds immense leverage over rare earth supplies:
- 70% of global mining
- 93% of magnet production
“These restrictions undermine our ability to develop our industrial base,” she said. “And it’s a powerful negotiating tool.”
Craig Singleton, Senior China Program Director at the Foundation for Defense of Democracies, warned that the era of tariff truces may be over.
“Mutually assured disruption is no longer a metaphor,” he said. “Both sides are reaching for economic weapons — and neither seems willing to back down.”
Will the Trump-Xi Meeting Still Happen?
The planned Trump-Xi meeting in South Korea was to take place during Trump’s Asia-Pacific tour, which includes stops in:
- Malaysia (ASEAN Summit)
- Japan
- South Korea (pre-APEC meeting with Xi)
While the White House hasn’t formally canceled the meeting, Trump’s tone suggests it is increasingly unlikely, especially if tensions escalate further.
Analysts believe that some diplomatic engagement may still occur, but it will depend heavily on how both sides react over the coming weeks — and whether either side softens its position before the Nov. 1 deadline.
You must Register or Login to post a comment.