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President Donald Trump announced Friday that his administration will impose a 100% tariff on all Chinese goods “over and above any tariff that they are currently paying,” a move that reignites tensions between Washington and Beijing after months of trade negotiations that had appeared to ease hostilities.
In a Truth Social post Friday afternoon, Trump said the sweeping tariffs were in response to new export restrictions announced by China a day earlier. Beijing’s latest controls target rare earth minerals and related technologies — resources essential to advanced manufacturing, defense systems, and consumer electronics.
“China has become very hostile on trade matters,” Trump wrote. “I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so.” The two leaders had been expected to unveil a trade pact at the summit.
The president added that the new tariffs will take effect on Nov. 1 “or sooner, depending on any further actions or changes taken by China.” Current U.S. tariffs on Chinese goods stand at roughly 40%, meaning the new measure will more than double existing import duties.
Trump also said the U.S. will introduce new export controls “on any and all critical software,” signaling a broader crackdown on technology exchanges with China.
A spokesperson for the Chinese Embassy in Washington declined immediate comment.
The surprise escalation sent global markets reeling. The S&P 500 dropped 2.7% on Friday, while the tech-heavy Nasdaq fell more than 3.6%. The Dow Jones Industrial Average lost nearly 900 points, or about 1.9%.
China’s newly announced regulations require foreign companies to obtain government approval to export items containing even small amounts of rare earth materials mined or processed in China. These minerals are vital for products including smartphones, jet engines, radar systems and electric vehicles.
The latest developments threaten to unravel months of painstaking diplomacy. The U.S. and China held multiple rounds of trade talks this year in Geneva, London and Washington, with progress reported on issues such as rare earth exports, TikTok’s ownership structure, and tariff reductions.
In June, Trump declared on Truth Social that “our deal with China is done,” saying Beijing had agreed to supply “full magnets and any necessary rare earths.” But U.S. officials and corporate executives later said those commitments were only partially fulfilled.
“Beijing will be happy to keep the U.S.-China negotiation going, but it is unlikely to make concessions,” said William Yang, a senior Northeast Asia analyst for the International Crisis Group.
The White House said trade officials still plan to meet with Chinese counterparts in November, though it remains unclear whether the summit will go forward given the president’s remarks Friday.
Analysts warn that the revived trade war could have far-reaching effects on global supply chains and U.S. inflation, particularly if China retaliates with further export restrictions or sanctions on American firms.
