Washington: The United States has reignited its trade war with China, as President Donald Trump announced a sweeping 100% additional tariff on Chinese imports — a move that has sent shockwaves through global markets.
The escalation follows Beijing’s reported plan to restrict exports of rare earth elements, essential materials used in manufacturing everything from smartphones to electric vehicles. These restrictions, seen as a power move by China, have reportedly provoked a sharp response from Washington.
Trump warned that he may call off his upcoming meeting with Chinese President Xi Jinping, and confirmed that both the tariff hike and new export controls targeting software will come into force on November 1.
“The United States will not stand by while Beijing pursues unfair and aggressive trade tactics,” Trump declared, adding on his social media platform Truth Social, “It’s hard to believe China would take such a step — but they did, and the rest is history.”
The announcement triggered a sharp sell-off in global markets, with the Nasdaq plunging 3.6% and the S&P 500 falling 2.7%. Currently, Washington levies a 30% tariff on Chinese goods, while Beijing maintains a 10% retaliatory tariff on American exports.
China’s recent decision to curb rare earth exports — materials critical for modern technology and green industries — is being viewed as a strategic challenge to the US. With China controlling a majority of global rare earth production, Trump’s latest move signals a new and fiercer phase in the world’s most consequential economic rivalry.
