Donald Trump has warned he may impose 100% tariffs on Chinese imports from 1 November, accusing Beijing of “very hostile” actions over rare-earth export restrictions.
The US president’s threat reignited fears of a renewed trade war between the world’s two largest economies, sending Wall Street tumbling. The S&P 500 dropped 2.7%, the Nasdaq 3.6%, and Nvidia shares nearly 5%.
Trump said China’s decision to expand controls on rare-earth exports — materials vital for electric vehicles and aircraft — was an attempt to “hold the world captive.”
“I never thought it would come to this,” he wrote on Truth Social. “But perhaps the time has come. It will be painful, but good for the U.S.A. in the end.”
He also announced plans for new export controls on “any and all critical software” and hinted that further “countermeasures” were under consideration.
China produces over 90% of the world’s processed rare earths and recently added five more materials to its export control list, sparking supply fears.
Relations between Washington and Beijing had improved after earlier tariff reductions, but Trump’s remarks cast doubt on a planned meeting with Xi Jinping, saying there was “no reason” to proceed.
The president’s renewed tariff threat underscores his economic strategy — using trade pressure to strengthen U.S. industry — but economists warn such moves could drive up consumer prices and strain global markets.
