President Donald Trump has warned he could impose 100% tariffs on Chinese imports as early as 1 November, accusing Beijing of “very hostile” actions to restrict rare-earth exports vital to US industries.
The threat marks a sharp reversal after months of improving relations and a partial rollback of earlier tariffs. Trump said the US would also tighten export controls on “any and all critical software.”
“I never thought it would come to this,” he wrote on Truth Social. “It will be painful, but good in the end for the U.S.A.”
The announcement sent markets tumbling. The S&P 500 dropped 2.7%, the Nasdaq fell 3.6%, and tech giant Nvidia lost nearly 5% in value.
Beijing recently expanded its export restrictions on rare-earth materials, which are crucial for electric vehicles, smartphones, and aircraft engines. China produces more than 90% of the world’s processed rare earths.
Trump suggested his planned meeting with President Xi Jinping in South Korea “may not happen,” signaling a renewed chill in US-China relations.
After earlier trade talks had lowered tariffs to 30% on Chinese goods, Trump’s latest move threatens to reignite a damaging trade war.
He claimed China’s rare-earth dominance was part of a “sinister” plan to “hold the world captive,” adding, “The U.S. has monopoly positions too — far stronger than China’s.”
Economists warn that Trump’s proposed tariffs would likely raise consumer prices, despite his repeated claims that inflation in the US “no longer exists.”
