US President Donald Trump on Friday threatened to impose a 100 per cent tariff on Chinese goods, “over and above any tariff that they are currently paying”, effective on November 1 or sooner.
In a social media post, Trump said Trump expressed frustration with new export controls placed on rare earth elements by China and said there seems to be no reason to meet with Chinese leader Xi Jinping as part of an upcoming trip to South Korea.
“Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other Nations who were similarly threatened, 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,” Trump wrote on Truth Social.
The President also said that from November 1, the US will impose export controls on any and all critical software.
Trump, while taking to reporters later during an Oval Office appearance, clarified that he had not cancelled his meeting with Jinping. "But I don't know that we're going to have it. I'm going to be there regardless, so I would assume we might have it,” he said.
Trump’s move to hike tariff was in response to the Chinese government’s decision to restrict access to rare earth minerals, requiring foreign companies to get special approval for shipping the metallic elements abroad.
Beijing had also announced permitting requirements on exports of technologies used in the mining, smelting and recycling of rare earths, adding that any export requests for products used in military goods would be rejected.
Trump said China has taken an "an extraordinarily aggressive position on trade" by sending "an extremely hostile letter to the world."
“This (Beijing’s decision) affects all countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other nations," the President said.
Trump’s new threat comes as a massive escalation in global trade war. According to CNN, its reflection was visible in the market even in the initial hours. Dow fell by 878 points or 1.9 per cent while the S&P 500 was down 2.7 per cent. The tech-heavy Nasdaq tumbled 3.5 per cent.
