Trump Warns of 100% Tariff in Reaction to China’s Rare Earth Mineral Limitations

On Friday, President Donald Trump announced his intention to enforce a full 100% tariff on all imports from China and restrict the export of “any and all critical software” from the U.S.

This action marks a significant escalation in the ongoing trade conflict between the U.S. and China. In a post on Truth Social concerning the tariffs, Trump noted that this new duty would be “in addition to” the current tariffs on Chinese goods. (As reported by CNBC, the existing tariff rates on Chinese imports can differ, but the current baseline rate is set at 40%.)

Earlier in the week, China implemented stricter export controls on rare earth minerals, mandating that foreign companies obtain a license to export products containing even minimal quantities. As the top producer of these vital materials—essential for technologies such as semiconductors and solar panels—China’s regulations may have significant implications for the tech industry.

In his remarks, Trump condemned China’s actions as “entirely 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 expressed.

Trump stated that the new tariffs would be effective starting November 1. After his announcement, he conveyed to reporters that these tariffs could be reconsidered and that he might still participate in an upcoming meeting with President Xi Jinping.

The markets reacted adversely to Trump’s announcement, with the Dow Jones Industrial Average falling by 1.9% by the end of Friday, the S&P 500 dropping by 2.71%, and the Nasdaq declining by 3.56%. Many tech companies faced even sharper declines, with Nvidia and Tesla both seeing reductions of approximately 5% at market close.

Furthermore, this situation negatively impacted the cryptocurrency markets, leading to liquidations that were reportedly ten times the dollar amount seen during the FTX collapse.