Washington: In a sweeping escalation of trade tensions, President Donald Trump on Friday announced that the U.S. will impose a 100 percent tariff on all imports from China starting November 1, 2025, or even sooner depending on Beijing’s actions. He also rolled out new export controls on critical U.S. software intended to counter what he called China’s “extraordinarily aggressive” trade strategy.
“We will act unilaterally,” Trump said in a post on his social media platform Truth Social, adding that the additional tariff would be “over and above any tariff that they are currently paying.” He portrayed China’s recent moves as a global threat: “This affects all countries, without exception … it is impossible to believe that China would have taken such an action.”
The announcement comes in direct response to China’s recent expansion of export restrictions on rare earth elements and related technologies. Beijing has broadened its control list to include 12 rare earths, along with curbs on lithium batteries, graphite anodes, and specialized production technologies tied to semiconductors and defense. China says the restrictions are driven by “national security” concerns.
On the Chinese side, further retaliation is already taking shape. Beijing has opened an antitrust probe into U.S. chipmaker Qualcomm and imposed additional port charges on U.S. vessels in Chinese ports.
Repercussions: markets, diplomacy and supply chains
The markets reacted immediately: U.S. equities fell sharply, with the S&P 500 dropping around 2 percent as investors feared renewed trade escalation. Commentators warned that the move threatens to unravel recent attempts at détente between Washington and Beijing.
Diplomatically, tensions may jeopardize a slated meeting between Trump and Chinese President Xi Jinping at the upcoming APEC summit in South Korea. Trump said Thursday that “there’s no reason to meet” with Xi under the circumstances, although he did not formally cancel the engagement.
Analysts warn that a full-blown trade war poses major risks to global supply chains, especially in high-tech, defense, and energy sectors reliant on rare earths, semiconductors, and advanced materials.
Strategic stakes and next moves
China holds a dominant share of global rare earth processing and magnet manufacturing — sectors critical to modern electronics, EVs, aerospace, and military hardware. By tightening export controls, Beijing gains leverage in its standoff with Washington.
The U.S., for its part, is now signaling an aggressive counterstrike: the 100 percent tariff, together with software export curbs, seeks to close off Chinese access while applying pressure to Beijing’s industrial base.
Much hinges on the period between now and November 1. If China further escalates or refuses to negotiate, the U.S. may push ahead. Conversely, de-escalatory signals — particularly around the APEC summit — could open space for diplomacy.
But even if talk resumes, the structural friction — over technology, trade dominance, and global supply chains — suggests that this conflict could endure.
