President Donald Trump has announced a sharp escalation in trade tensions with China, declaring a 100% tariff on all Chinese imports. The decision comes in response to new restrictions China is implementing on the export of rare earth minerals—materials crucial to the tech and defense industries.
Set to take effect on November 1, the new U.S. tariffs will be added on top of the existing 30% duties, bringing the total tariff rate on Chinese imports to 130%. Trump also revealed that his administration will introduce new export controls on critical U.S. software on the same date.
The move effectively ends a fragile truce between the two economic superpowers that had kept trade tensions in check for the past several months.
In a statement posted on his Truth Social account, Trump criticized China’s actions as a deliberate and aggressive attempt to dominate global technology supply chains. “It is impossible to believe that China would have taken such an action, but they have, and the rest is history,” he wrote.
China, which dominates the global supply of rare earth minerals, announced on October 9 that it would expand export restrictions to five more rare earth elements and impose tighter controls on dozens of refining technologies. New compliance rules are also being introduced for international manufacturers that rely on Chinese-sourced materials.
Trump hinted that he could reverse the tariffs if China withdraws its export curbs. “We're going to have to see what happens,” he told reporters, noting that the November 1 implementation date was chosen to allow time for potential changes.
Rare earths are essential in producing semiconductors, microchips, and various electronic devices, making them a strategic asset in the global tech economy.
The president described China’s move as a "sinister and hostile" strategy to leverage its near-monopoly on rare earths, accusing Beijing of sending letters to countries worldwide outlining the new restrictions. “This affects all nations without exception,” Trump said, calling the move “a moral disgrace” and “unheard of in international trade.”
Earlier this year, the U.S. and China extended a temporary trade agreement that prevented tariffs from rising to historic highs—145% for U.S. tariffs and 125% for Chinese tariffs. That deal now appears to be in jeopardy.
In addition to trade, diplomatic fallout may be imminent. Trump suggested he may cancel a planned meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month. “There seems to be no reason to do so,” Trump said, citing what he called "great trade hostility" from Beijing.
Despite previously describing the U.S.-China relationship as strong over the past six months, Trump claimed the latest developments validate his long-held suspicions: “I have always felt that they’ve been lying in wait, and now, as usual, I have been proven right.”
