Donald Trump has threatened to impose 100% tariffs on Chinese goods as tensions flare over Beijing’s move to tighten control of rare-earth exports.
The US president accused China of “very hostile” actions and warned the new tariffs could take effect on 1 November “or sooner.”
Relations between Washington and Beijing had recently improved, with both sides reducing earlier trade duties. But Trump’s late-Friday announcement reignited fears of another trade war.
“I never thought it would come to this,” Trump wrote on Truth Social. “Ultimately, it will be a very good thing for the U.S.A.”
He also announced new export controls on “any and all critical software,” hinting at further economic countermeasures.
Markets reacted sharply. The S&P 500 fell 2.7%, the Dow dropped 1.9%, and the Nasdaq slid 3.6%, with Nvidia shares down nearly 5%.
China produces more than 90% of the world’s processed rare earths — materials vital for electric vehicles, electronics, and aircraft.
Earlier this week, Beijing added five new materials to its export control list, reviving concerns about global supply shortages.
Trump accused China of building a “monopoly” over critical elements, calling it “a sinister and hostile move.”
A planned meeting with Xi Jinping later this month now appears unlikely. “There seems to be no reason to meet,” Trump said.
The renewed tariff threat marks another escalation in Trump’s trade policy, which he claims boosts US strength — though economists warn it risks higher prices and global instability.
