Trump announces 100% tariff on Chinese imports and a ban on critical software.
The announcement comes in response to the Asian giant's decision to drastically expand its export controls on rare earth minerals.
247 - US President Donald Trump announced on Friday (10) that the country will impose a 100% tariff on all Chinese imports and block the export of “any critical software” to Beijing, in response to China’s decision to drastically expand its export controls on rare earth minerals — essential inputs for the technology, defense and green energy industries.
“Based on the fact that China has taken this unprecedented position (...), the United States of America will impose a 100% tariff on China, in addition to any tariffs they are currently paying. Also on November 1st, we will impose export controls on any and all critical software,” Trump declared on his Truth Social platform.
The announcement represents one of the biggest escalations in the Sino-American trade war since 2019, and comes a day after the Chinese government released a new round of export restrictions on five rare earth elements — holmium, erbium, thulium, europium and ytterbium — and technological components used in semiconductors and military equipment.
Rupture before the summit
Trump stated that the measures will take effect on November 1st, but could be brought forward "depending on China's actions." He accused Beijing of sending an "extremely hostile letter to the world," alleging that the country is trying to "hold the global economy hostage" by restricting the supply of essential minerals.
"It's impossible to believe that China would have taken such action, but it did, and the rest is history," the president wrote.
The Republican also threatened to cancel the meeting with President Xi Jinping, scheduled to take place in three weeks in South Korea, which jeopardizes any attempt at economic détente between the two powers. Beijing, for its part, had not officially confirmed the meeting.
The Chinese offensive
The day before, China's Ministry of Commerce announced an expansion of export restrictions on rare earth elements, tightening controls over the production and refining of materials used in electric vehicle batteries, aircraft engines, and military radar.
The measures also target foreign companies that use Chinese materials or equipment, requiring them to obtain an export license even when there are no direct transactions with Chinese companies. Beijing justified the decision as part of a policy of "protecting strategic resources and national security," but analysts see the move as a response to Western sanctions on chips and cutting-edge technology.
Global impact
The 100% tariffs imposed by Trump could cause further disruptions in global supply chains, especially in sectors dependent on Chinese imports, such as electronics, automotive, and renewable energy.
Experts warn that the confrontation could fuel global inflation and deepen the fragmentation of international trade into rival blocs. The International Monetary Fund (IMF) had already warned in September that "accelerated deglobalization" could cost up to 7% of global GDP in the coming decades.
