Donald Trump has warned he will impose 100% tariffs on Chinese imports from 1 November, accusing Beijing of “very hostile” trade tactics.
The US president’s threat followed China’s decision to tighten controls on rare-earth exports — critical materials for electric vehicles, semiconductors, and aircraft engines.
Posting on Truth Social, Trump said: “One of the policies we’re calculating is a massive increase of tariffs on Chinese products.” He added that the US could also impose export controls on “any and all critical software.”
Financial markets reacted sharply. The S&P 500 fell 2.7%, the Nasdaq dropped 3.6%, and Nvidia shares slid nearly 5%.
Relations between Washington and Beijing had recently improved after both sides agreed to reduce tariffs earlier this year. But Trump now says a planned meeting with Xi Jinping “may no longer happen.”
The president’s move threatens to reignite a trade war that had previously seen US tariffs peak at 145% before a fragile truce lowered them to 30%.
China, which supplies over 90% of the world’s processed rare earths, expanded export restrictions this week by adding five new materials to its control list.
Trump called China’s dominance “sinister and hostile,” claiming, “They’ve been lying in wait to hold the world captive.”
While Trump insists tariffs will boost US industry and government revenue, economists warn they could drive up prices for American consumers already facing rising inflation.
