Donald Trump has warned he will impose 100% tariffs on Chinese goods from 1 November, accusing Beijing of “very hostile” actions.
The threat came after China tightened export controls on rare earth materials — essential for U.S. technology and manufacturing industries.
“Perhaps the time has come,” Trump wrote on Truth Social, saying the tariffs would be “painful but good in the end” for the U.S.
The move reignites trade war fears between the world’s two largest economies, just months after both sides eased earlier tariff hikes.
Markets tumbled following Trump’s announcement. The S&P 500 fell 2.7%, the Dow Jones dropped 1.9%, and the Nasdaq sank 3.6%. Nvidia shares slid nearly 5%.
Trump also hinted a planned meeting with Xi Jinping in South Korea may be canceled, saying there is “no reason” to meet.
China, which produces over 90% of the world’s processed rare earths, recently added five new materials to its export control list.
Calling China’s actions “sinister and hostile,” Trump claimed Beijing aims to “hold the world captive.”
Despite warning of economic pain, he said the U.S. holds “much stronger” monopolies in other sectors — and vowed further countermeasures if China retaliates.
