Donald Trump has threatened to impose new 100% tariffs on Chinese goods from 1 November — or sooner — accusing Beijing of “very hostile” trade moves.
The warning came after China tightened export controls on rare earth materials vital to US manufacturing, escalating economic tensions between the two nations.
Posting on Truth Social, Trump said the tariffs would be “over and above” existing duties and part of “a massive increase” under consideration. “Perhaps the time has come,” he wrote, calling the move painful but ultimately “a good thing” for the US.
The announcement rattled global markets. The S&P 500 fell 2.7%, its worst day since April, while the Dow dropped 1.9% and the Nasdaq slid 3.6%. Tech giant Nvidia fell nearly 5%.
Relations between Washington and Beijing had briefly improved over the summer, with both sides lowering tariffs after months of talks. But Trump’s latest remarks threaten to undo that fragile truce.
A planned meeting with China’s president, Xi Jinping, later this month now appears in doubt. “There seems to be no reason to meet,” Trump said.
China, which produces more than 90% of the world’s processed rare earths, recently added five new materials to its export control list, intensifying concerns about global supply chains.
Trump accused Beijing of using rare earths as “a weapon,” claiming the US also holds “monopoly positions” in key industries.
While Trump argues tariffs will strengthen the US economy, economists warn they could raise consumer prices — at a time when inflation remains stubbornly high.
