Trump Warns of 100% Tariff Following China’s Restrictions on Rare Earth Minerals

On Friday, President Donald Trump announced his intention to impose a complete 100% tariff on all imports from China and to restrict the export of “any and all critical software” from the United States.

This action marks a significant intensification in the ongoing trade conflict between the U.S. and China. In a statement on Truth Social regarding the tariffs, Trump noted that this new tariff would be “in addition to” the current tariffs on Chinese goods. (As reported by CNBC, while tariffs on Chinese imports vary, the prevailing baseline rate stands at 40%.)

Earlier in the week, China instituted more stringent export controls on rare earth minerals, requiring foreign companies to obtain a license to export products with even trace amounts. As the foremost producer of these critical materials—vital for technologies like semiconductors and solar panels—China’s regulations could significantly impact the technology sector.

In his remarks, Trump described China’s actions as “completely unprecedented in International Trade, and a moral disgrace in dealings with other Nations.”

“It’s difficult to comprehend why China has chosen this path, but they have, and the repercussions will be monumental,” he commented.

Trump stated that the new tariffs would take effect starting November 1. Following his announcement, he told reporters that these tariffs may be subject to review and that he might still participate in an upcoming meeting with President Xi Jinping.

In response to Trump’s announcement, the markets reacted unfavorably, with the Dow Jones Industrial Average falling by 1.9% by the end of Friday, the S&P 500 dropping 2.71%, and the Nasdaq declining by 3.56%. Many technology companies experienced even sharper declines, with Nvidia and Tesla both showing drops of approximately 5% at market close.

Additionally, this situation negatively affected the cryptocurrency markets, leading to liquidations that were reportedly ten times the dollar value seen during the FTX collapse.