President Donald Trump has warned he could impose 100% tariffs on Chinese imports as early as 1 November, accusing Beijing of “very hostile” actions to restrict exports of rare earth materials vital to US industries.
The threat reignited tensions between Washington and Beijing, sparking sharp declines on Wall Street and fears of a renewed trade war between the world’s two largest economies.
Relations had improved over the summer, with both sides agreeing to ease earlier tariff hikes. But Trump’s late-Friday post on Truth Social marked a dramatic reversal. “Perhaps the time has come,” he wrote. “It will be painful but, in the end, good for the U.S.A.”
He said the US would also impose export controls on “any and all critical software,” while warning that talks with Xi Jinping later this month might now be scrapped.
China, which produces more than 90% of the world’s rare earths, recently expanded export controls to five additional materials, escalating global supply fears.
Markets reacted swiftly: the S&P 500 fell 2.7%, the Dow Jones dropped 1.9%, and the Nasdaq sank 3.6%. Nvidia shares tumbled nearly 5%.
Trump accused Beijing of trying to “hold the world captive” through rare-earth dominance, calling it a “sinister and hostile move.”
The president defended his tariff strategy as a way to boost US strength and revenue, though economists warn such measures often raise consumer prices — contradicting Trump’s claims that inflation has disappeared.
