President Donald Trump has warned he will impose new 100% tariffs on Chinese goods as early as 1 November, accusing Beijing of “very hostile” actions after it tightened restrictions on rare-earth exports.
The move threatens to reignite a trade war between the world’s two largest economies, just months after relations had improved.
Writing on Truth Social, Trump said: “Perhaps, as with all things, the time has come. A massive increase of tariffs is under serious consideration.” He also announced plans to introduce export controls on “any and all critical software.”
The announcement sent shockwaves through global markets. The S&P 500 fell 2.7%, the Nasdaq dropped 3.6%, and tech giant Nvidia lost nearly 5% of its value.
China, which produces over 90% of the world’s processed rare earths — vital for electric vehicles and electronics — recently expanded export restrictions to five new materials, raising fears of supply shortages.
Trump accused China of trying to “hold the world captive” through its dominance in rare-earth production. “This is a sinister and hostile move,” he said.
The president’s threat comes after months of easing tensions, during which both countries had agreed to lower tariffs. A planned meeting between Trump and Xi Jinping later this month now appears unlikely.
Analysts warned that renewed tariffs could strain global supply chains and push prices higher. Despite Trump’s claim that inflation is “gone,” price growth in the US continues to rise.
