Trump Threatens 100% Tariffs as China Restricts Rare Earth Exports
US President Donald Trump has threatened to impose 100% tariffs on Chinese goods from November 1, responding to China’s restrictions on rare earth mineral exports. The announcement triggered immediate market turmoil, with the Nasdaq falling 2% and the dollar weakening.
Key Developments
- Trump announced 100% additional tariffs on Chinese goods effective November 1
- China imposed strict controls on rare earth mineral exports
- Markets reacted sharply with Nasdaq down 2%
- Trump questioned planned meeting with Xi Jinping at APEC summit
Trump’s Response to China’s “Hostile” Move
President Trump called China’s rare earth restrictions “very hostile” and unprecedented. On Truth Social, he stated: “Based on the fact that China has taken this unprecedented position…the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying.”
He criticized China for sending letters worldwide outlining controls on “each and every element of production having to do with Rare Earths,” adding: “There is no way that China should be allowed to hold the World ‘captive.'”
APEC Summit Meeting in Doubt
Trump questioned his planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation 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 said.
The President warned the tariffs could be “massive,” potentially reigniting the full-scale trade war between Washington and Beijing.
China’s Rare Earth Restrictions
Beijing’s commerce ministry announced new rules requiring special approval for exports of rare earth elements or products containing trace amounts. China dominates global rare earth production and processing, stating the curbs aim to “safeguard national security.”
The restrictions threaten key industries from defense to electronics that depend on these critical minerals. There was no immediate reaction from Beijing to Trump’s latest tariff threat.
