President Donald Trump announced Friday that the United States will impose a new 100% tariff on all Chinese imports beginning November 1, or sooner if Beijing makes further moves restricting exports of rare earth elements. The decision dramatically escalates trade tensions between the world’s two largest economies and could threaten the fragile global economic recovery.
Trump said the tariff is a direct response to China’s new export controls on rare earths—critical materials used in electronics, jet engines, and military technology. “China is becoming very hostile,” he wrote on Truth Social, accusing Beijing of “holding the world captive.”
The move effectively doubles existing tariffs of about 30%, reviving fears of a full-blown trade war reminiscent of earlier years when tit-for-tat duties nearly halted U.S.-China commerce. Economists warn the tariffs could fuel inflation and destabilize markets, with the S&P 500 dropping 2.7% Friday.
Beijing has not yet responded formally, though analysts suggest both nations may still seek to de-escalate through negotiations. Experts say China maintains leverage through its near-monopoly on rare earth production, controlling 70% of mining and over 90% of magnet manufacturing.
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