In a major escalation of U.S. trade pressure on China, President Donald Trump announced on October 10 that the United States will impose an additional 100 percent tariff on Chinese imports beginning November 1, — or possibly sooner, depending on China’s actions. In a post on Truth Social, Trump framed the move as a retaliation against China’s newly expanded export controls on rare earth elements, accusing Beijing of taking “an extraordinarily aggressive position on trade.” Alongside the tariff threat, he also plans to roll out export controls on “any and all critical software” from U.S. firms.
The announcement marks a sharp reversal of the relative détente that had prevailed over recent months, ending what many viewed as a fragile truce between Washington and Beijing. Markets reacted swiftly: the S&P 500 fell about 2.7 percent, the Nasdaq dropped 3.6 percent, and the Dow plunged nearly 900 points amid fears the renewed tariff war will hit global growth and technology sectors especially hard.
In publicly criticizing China’s export curbs on mineral inputs essential for semiconductors and defense — including magnets and metals used in advanced technologies — Trump argued that Beijing is “becoming very hostile” and that its policies are “holding the world captive.” He also suggested that his previously scheduled meeting with Chinese President Xi Jinping — set for mid-October — may now be in doubt in light of the escalating tensions.
China has not yet issued a formal response, but observers expect strong retaliation given the strategic importance of rare earth exports to its economic leverage. Analysts warn that the twin moves — sweeping tariffs plus software export controls — could deepen supply chain disruptions, raise costs for U.S. tech firms reliant on Chinese inputs, and provoke a fierce back-and-forth escalation.
Whether Trump’s threat will be carried out as declared — or modified in response to Chinese countermoves — remains to be seen. But the announcement signals that his administration is prepared to re-escalate the U.S. trade confrontation with China at a scale unseen in recent years.
