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Trump Reacts to China’s Rare Earth Mineral Restrictions with Warning of Full 100% Tariffs

On Friday, President Donald Trump declared his intention to implement a 100% tariff on all imports from China, along with export restrictions on “any and all critical software” coming from the United States.

This move signifies a major intensification in the ongoing trade conflict between the U.S. and China. In a post on Truth Social announcing the tariffs, Trump highlighted that this new tariff would be “in addition to” the existing tariffs already imposed on Chinese imports. (According to CNBC, while the U.S. tariffs on Chinese products vary by item, the baseline tariff rate currently stands at 40%.)

Earlier this week, China introduced tighter export controls on rare earth minerals, requiring foreign companies to secure a license to export products containing even trace amounts of these minerals. As the leading global producer of rare earth minerals—essential for technologies like semiconductors and solar panels—China’s regulations have profound implications for the tech industry.

In his remarks, Trump described China’s decision as “entirely unprecedented in International Trade, and a moral disgrace when interacting with other Nations.”

“It is difficult to comprehend why China would take such a step, but they have, and the repercussions will be part of history,” he stated.

Trump announced that the new tariffs would take effect on November 1. Following his post, he told reporters that the tariffs could potentially be lifted and that he would not necessarily cancel a forthcoming meeting with President Xi Jinping.

In response to Trump’s announcement, markets experienced a downturn, with the Dow Jones Industrial Average dropping 1.9% by the end of Friday, the S&P 500 declining by 2.71%, and the Nasdaq falling 3.56%. Some tech companies faced even steeper losses, with Nvidia and Tesla both seeing approximately 5% declines at market close.

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Moreover, this development adversely affected the cryptocurrency markets, leading to liquidations reportedly ten times the dollar value experienced during the FTX collapse.