WASHINGTON (FN) -President Donald Trump announced Friday that the United States will impose an additional 100% tariff on all Chinese imports beginning November 1, citing Beijing’s newly expanded export controls on rare earth elements. The decision marks a sharp escalation in the ongoing trade war between the world’s two largest economies.
The new tariffs will be layered atop existing duties, which currently stand at 30% on most Chinese goods. In a post on Truth Social, Trump described China’s export restrictions as “extraordinarily aggressive” and “a moral disgrace,” warning that the tariff timeline could be accelerated if Beijing enacts further trade barriers.
China’s latest export rules require companies to obtain special licenses to ship products containing even trace amounts of rare earth metals, regardless of where the final product is manufactured. These metals are essential for producing semiconductors, electric vehicle batteries, jet engines, and defense systems. China dominates global mining and processing of rare earths, giving it strategic leverage in trade disputes.
In a retaliatory move Friday, China imposed new port fees on U.S.-owned vessels docking at Chinese ports, calling it a response to “discriminatory” U.S. charges levied against Chinese ships. The tit-for-tat measures have further strained diplomatic relations and cast doubt on a planned meeting between Trump and Chinese President Xi Jinping later this month.
The announcement sent shockwaves through financial markets. The S&P 500 fell 2.7%, the Dow Jones Industrial Average dropped 1.8%, and the Nasdaq Composite plunged 3.6%. Cryptocurrency markets also saw historic losses, with 19 Billion Dollars in liquidations reported.
In addition to the tariffs, the Trump administration will implement new export controls on “any and all critical software” starting next month. These restrictions are aimed at curbing China’s access to advanced technologies used in artificial intelligence, aerospace, and cybersecurity.
The U.S.-China trade relationship has been volatile throughout 2025. Earlier this year, both countries imposed steep tariffs—145% by the U.S. and 125% by China—before agreeing in May to reduce them to 30% and 10%, respectively, while pursuing a broader trade agreement. Those negotiations now appear to be in jeopardy.
China remains the United States’ third-largest trading partner, with 438.9 Billion Dollars in goods imported from China and 143.5 Billion Dollars exported to China last year. The economic ties extend beyond trade, with ongoing negotiations over the ownership transfer of TikTok’s U.S. operations and disputes over student visa restrictions.
Analysts warn that the new tariffs could drive up consumer prices in the U.S., particularly for electronics, automotive parts, and renewable energy components. Business groups have urged both governments to return to the negotiating table to avoid further disruption to global supply chains.
