Donald Trump has threatened to impose 100% tariffs on Chinese imports starting 1 November, accusing Beijing of “very hostile” moves to restrict rare-earth exports.
The warning reignites fears of a new trade war between the world’s two largest economies, sending Wall Street sharply lower on Friday.
Relations between Washington and Beijing had recently improved, with both sides cutting tariffs after summer negotiations. But Trump’s latest statement reverses course, pledging to “massively increase” duties and introduce export controls on “critical software.”
“I never thought it would come to this,” Trump wrote on Truth Social. “It will be painful, but good in the end for the U.S.A.”
A planned meeting with Chinese president Xi Jinping may now be cancelled, Trump suggested, saying there was “no reason” to meet.
China produces over 90% of the world’s processed rare earths — vital materials for electric vehicles, aircraft, and electronics. Beijing expanded export restrictions this week, adding five more rare-earth materials to its control list.
The president accused China of trying to “hold the world captive” through its monopoly on key resources. “They’ve been lying in wait,” he claimed.
Markets reacted swiftly: the S&P 500 fell 2.7%, the Nasdaq sank 3.6%, and Nvidia shares dropped nearly 5%.
Trump’s tariff threats mark another escalation in his protectionist agenda — one that risks higher prices for American consumers despite his claims that inflation is no longer an issue.
