Trade War Reignited: Trump Slams China with Additional 100% Tariffs
The US President, Donald Trump, announced an additional 100% tariffs on China, ending months of trade truce between the world’s two largest economies.
Trump also hinted at cancelling his upcoming meeting with the Chinese leader, Xi Jinping, at the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea.
New Tariffs on China
On Friday, the US President announced that he would impose a 100% tariff on Chinese imports to the US, to add to the 30% tariffs already in effect. He also unveiled export controls on all critical software.
“Starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying. Also on November 1st, we will impose Export Controls on any and all critical software,” Trump wrote on Truth Social.
Retaliatory Measure
Trump attributed this measure to China’s decision to expand export controls on rare earth elements, calling it “an extraordinarily aggressive position on Trade.”
On Thursday, China announced imposing export controls on rare earths to take effect on December 1, including adding five new elements and dozens of pieces of refining technology to its export-restricting control list, reported Reuters.
Beijing also asked foreign rare earth producers that utilize Chinese materials to have a license to export products that contain small traces of rare earth elements sourced from China.
China accounts for around 70% of the world’s rare earth minerals mining output, and controls about 90% of global rare earths processing. Rare earth minerals are essential for high-tech industries, including automobiles, defense and semiconductors.
This dominance has given China a lead in clean technologies, such as electric vehicles and wind turbines.
‘Hostile’ China
The US President accused the Chinese of devising this “plan” in advance. “It is impossible to believe that China would have taken such an action, but they have, and the rest is History,” he said.
In an earlier post, Trump said that Beijing was becoming “very hostile” and trying to “hold the world captive” by tightening controls on rare earths exports.
On Thursday, Washington proposed barring Chinese airlines from flying over Russia on US-bound routes. Separately, the US Federal Communications Commission announced that major online retailers in the US had removed millions of listings for banned Chinese electronics.
No Summit with Xi
Trump suggested he would cancel a meeting with Xi at the APEC Summit in South Korea later this month. “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,” he posted on Truth Social.
However, Trump later said he had not canceled the meeting. “I haven’t canceled. I would assume we might have it,” he told reporters at the White House, according to Reuters.
Trump’s remarks sent shockwaves across financial markets, with the S&P 500 index closing down 2.7%, its steepest drop since April.
US-China Trade War
On April 2, Trump sparked a trade war by announcing stiff tariffs on all imports to the US, with China taking the hardest blow as the world’s biggest exporter and second largest economy. This move has prompted retaliation from Beijing, and further responses from Trump.
The two countries engaged in a tit-for-tat tariff spree, with the US tariffs against China hitting 145%, while Beijing’s tariffs against Washington stood at 125%.
However, both countries announced in May 2025 that they agreed to slash tariffs by 110% for 90 days, heralding a temporary trade truce.
Thus, the US reduced tariffs on Chinese goods from 145% to 30%, while China lowered duties on US goods from 125% to 10%.
