Donald Trump has threatened to impose 100% tariffs on Chinese imports as tensions rise over Beijing’s new restrictions on rare-earth exports.
The US president accused China of “very hostile” behavior and warned that the tariffs could take effect on 1 November “or sooner.”
His comments came after Beijing expanded its export controls on rare earth materials vital for manufacturing electric vehicles, aircraft, and electronics.
“I never thought it would come to this,” Trump wrote on Truth Social. “Ultimately, it will be a good thing for the U.S.A.”
The announcement sent Wall Street tumbling. The S&P 500 fell 2.7%, the Dow dropped 1.9%, and the Nasdaq slid 3.6%, with tech stocks hit hardest.
Nvidia shares plunged nearly 5%, while London’s FTSE 100 also fell 0.9% amid fears of a renewed trade war.
Trump hinted that his planned meeting with Xi Jinping later this month “may not happen,” saying there was “no reason” to meet.
Earlier this year, both nations eased tariffs after months of negotiation, but the president’s latest move threatens to undo that fragile truce.
China produces more than 90% of the world’s processed rare earths, giving it major leverage in global supply chains.
Trump argued the U.S. must respond: “China should not be allowed to hold the world captive. The U.S. has much stronger monopolies.”
While Trump claims higher tariffs will boost U.S. revenue, economists warn they could fuel inflation and raise costs for consumers already feeling price pressure.
