US President Donald Trump has sharply raised the stakes in the ongoing trade conflict with China by announcing a sweeping new 100% tariff on all Chinese imports, set to take effect from November 1, 2025. This drastic tariff rise, on top of existing duties, sharply escalates tensions between the world’s two largest economies and comes as China tightens export controls on key materials such as rare earth minerals.
Trump described the actions of China as an “extraordinarily aggressive” and “moral disgrace,” pointing to what he called a hostile letter from Beijing, signaling sweeping export restrictions covering nearly all Chinese products, and even on items not manufactured in China. These restrictions include crucial components for industries ranging from technology to defense.
The new US tariffs could push total levies on Chinese goods close to 130%, hitting sectors already under stress from prior trade measures. In parallel, Washington will impose strict export controls on critical US-made software, aiming to curb their technological advances.
Global markets reacted sharply to the announcements, with major US indices seeing their steepest drops in months. American farmers also faced renewed uncertainty as soybean futures slid amid fears of a cutback in Chinese agricultural imports. The US is eyeing alternative markets in Southeast Asia to offset possible losses.
Beijing responded with retaliatory steps such as port fees on US ships and broadening antitrust scrutiny on American tech firms. Trump cancelled plans for a key meeting with Chinese President Xi Jinping at the APEC Summit, saying “there seems to be no reason to do so” amid the growing hostilities. However, he left open the possibility of easing tariffs if China reverses its rare earth export curbs.
This latest round of trade measures reinstates rare earth minerals at the heart of the US-China rivalry. These elements, critical to high-tech industries and green energy technologies, highlight deep strategic concerns over supply chain vulnerabilities. The growing dispute threatens to hold back global economic recovery and upend trade flows just as a fragile détente was taking hold.
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