President Donald Trump has threatened to impose new 100% tariffs on Chinese imports, accusing Beijing of “very hostile” actions after it expanded restrictions on rare-earth exports.
The announcement reignited trade tensions between the world’s two largest economies and sent Wall Street tumbling, with the S&P 500 dropping 2.7% and the Nasdaq falling 3.6%.
Trump said the tariffs could take effect on 1 November “or sooner”, depending on how China responds. “Perhaps the time has come,” he wrote on Truth Social, calling the move “painful but good for the U.S.A.”
The president also revealed plans for export controls on “any and all critical software,” suggesting further measures were under consideration.
Beijing recently added five new materials to its list of restricted rare-earth exports, tightening control over elements vital for electric cars, smartphones, and military technology.
China produces more than 90% of the world’s processed rare earths, giving it significant leverage over global supply chains.
Trump hinted that his planned meeting with President Xi Jinping in South Korea may now be cancelled, saying there was “no reason” to proceed.
The move marks a sharp reversal from the trade truce reached earlier this year, when tariffs were reduced following months of negotiations.
Trump’s renewed tariff threat deepens investor fears of another trade war — one that could again shake global markets and push up prices for American consumers.
