President Donald Trump announced Friday that the United States will impose sweeping new tariffs on Chinese goods, escalating economic tensions between Washington and Beijing after China moved to strengthen its control over critical minerals and rare earth elements — materials essential to modern technology and defense industries.
In a post on Truth Social, Trump said his administration would levy a 100 percent tariff on all Chinese imports beginning Nov. 1, or possibly sooner. The new tariffs will replace existing duties already in place on Chinese goods, many of which date back to Trump’s first term.
“It is impossible to believe that China would have taken such an action, but they have, and the rest is History,” Trump wrote. “This move is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations.”
The president also said the U.S. would impose export controls on “any and all critical software” tied to sensitive technologies, signaling a broad crackdown on technology transfers to China.
China Tightens Control Over Rare Earths
Trump’s announcement came after Beijing revealed earlier this week that foreign entities must now obtain a license to export any product containing more than 0.1 percent of rare earth elements sourced or processed in China. The rule effectively gives China more leverage over the global supply of the minerals, which are indispensable to industries ranging from renewable energy and defense systems to consumer electronics and electric vehicles.
China currently controls about 70 percent of the world’s rare earth supply, giving it substantial influence over the production of items such as smartphones, laptops, and semiconductor components.
Market Fallout and Diplomatic Ripples
The president’s tariff announcement came shortly after the U.S. stock market closed Friday, but Wall Street had already taken a sharp hit earlier in the day as investors reacted to Trump’s initial threats.
The Dow Jones Industrial Average tumbled 876 points, or 1.9 percent. The S&P 500 fell 2.7 percent, while the Nasdaq composite, heavily weighted with technology stocks dependent on rare earths, plunged 3.6 percent.
Economic analysts warned that the new tariffs could lead to higher prices for U.S. consumers, particularly for electronics and automobiles, while further straining relations with Beijing at a time when global supply chains remain fragile.
Trade Tensions and a Canceled Meeting
Trump also hinted that he may cancel a planned meeting with Chinese President Xi Jinping during an upcoming summit in South Korea, signaling that diplomatic ties could deteriorate further.
Although Trump has often spoken favorably of Xi during his second term, the relationship between the two nations has remained rocky. The administration has maintained tariffs from Trump’s first term and recently increased pressure on Beijing over the flow of fentanyl into the United States.
Impact on U.S. Farmers and Industry
The tariff escalation could also have ripple effects across America’s agricultural sector. China has already halted purchases of U.S. soybeans, a move that has hurt American farmers who depend heavily on exports to China.
Rare earth restrictions could further squeeze U.S. manufacturing, forcing companies to seek alternative suppliers in countries like Australia, Canada, and the United States itself — though ramping up domestic production would take years.
A Growing Economic Showdown
Friday’s developments mark the sharpest escalation in U.S.-China trade tensions since Trump returned to the White House in 2025. Economists say both countries are entering a risky phase of economic brinkmanship, where each side may use strategic industries as leverage.
“China’s rare earth policy is a clear power play,” said one Washington trade analyst. “Trump’s 100 percent tariff is a direct counterstrike — but it’s going to test how much pain both economies can take.”
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