Donald Trump has threatened to impose 100% tariffs on Chinese goods starting 1 November, accusing Beijing of “very hostile” trade actions.
The move follows China’s decision to tighten export controls on rare earth materials vital to U.S. manufacturing and defense industries.
Relations between Washington and Beijing had recently improved after months of tariff reductions, but Trump’s latest comments reignited fears of another trade war.
“I never thought it would come to this,” Trump wrote on Truth Social. “But perhaps the time has come. It will be good for the U.S.A. in the end.”
The president also announced plans for new export controls on “any and all critical software,” and hinted a planned meeting with Xi Jinping in South Korea may be canceled.
Markets reacted sharply: the S&P 500 fell 2.7%, the Dow Jones dropped 1.9%, and the Nasdaq tumbled 3.6%, led by a 5% fall in Nvidia shares.
China produces more than 90% of the world’s rare earths, which are essential for electric vehicles, smartphones, and jet engines.
Beijing’s new restrictions added five materials to its export control list, intensifying supply fears across global industries.
Trump said China had created a “monopoly position” in rare earths and accused it of trying to hold the world “captive.”
He argued that higher tariffs would ultimately benefit the U.S. economy — despite economists warning that such measures risk driving up consumer prices and global instability.
