Trump announces 100% tariffs on China on rare earth export restrictions

US President Donald Trump has announced 100% tariffs on China, as the global trade war gets reignited.

Trump said Friday he would hit China with a 100% additional tariff and impose new export controls on critical software products after Beijing placed sweeping restrictions on the export of rare-earth minerals.

The new measures would take effect November 1, 2025, Trump said in a Truth Social post, which came after earlier threats of retaliation sparked a market selloff that sent the S&P 500 to its worst day since April.

Dow tumbled nearly 900 points on Friday. Following Trump's remarks, financial markets tumbled, with the S&P 500 closing down 2.7%, marking its steepest decline since April.

In an earlier post on Truth Social last Friday, Trump responded sharply to Beijing's recent decision to tighten export rules on rare earths, accusing China of "becoming very hostile" and attempting to hold the world "captive."

He threatened to withdraw from a scheduled meeting with China's President Xi Jinping, though he later clarified he had not canceled it, adding, "I do not know that we're going to have it."

"I'm going to be there regardless," he told reporters at the White House.

Rare earths production

China dominates the production of rare earths and other critical materials essential for cars, smartphones, and numerous other products.

The last time Beijing tightened export controls — after Trump raised tariffs on Chinese goods earlier this year — there was widespread concern from US companies dependent on these materials.

Carmaker Ford even temporarily halted production.

Besides the rare earth export restrictions, China has launched a monopoly investigation into the American tech firm Qualcomm, which could delay its acquisition of another chipmaker.

During his second term as President of the US, Donald Trump enacted a series of steep tariffs affecting nearly all goods imported into the country.

From January to April 2025, the average applied US tariff rate rose from 2.5% to an estimated 27% — the highest level in over a century.

This buildup of tensions underscores the escalating trade disputes between the world's two largest economies.