Trade war reignites as Trump imposes 100% tariff on China
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Photo: AP
Washington: US President Donald Trump on Friday announced a new 100 per cent tariff on Chinese goods and warned that he might cancel his upcoming summit with Chinese President Xi Jinping, escalating tensions in the ongoing trade dispute over rare earth mineral exports.
Trump said the additional tariffs, along with new restrictions on US exports of “critical software,” would take effect on November 1. He described China’s recent actions as “extraordinarily aggressive” and claimed they had left Washington with no choice but to respond.
Posting on Truth Social, Trump said it was “hard to believe” that Beijing had acted this way, adding that the situation would have lasting consequences.
His comments triggered a sharp market reaction — the Nasdaq fell by 3.6 per cent and the S&P 500 by 2.7 per cent.
Currently, Chinese goods face 30 per cent US tariffs, many of which date back to Trump’s earlier presidency, when he accused Beijing of unfair trade practices and complicity in the fentanyl trade. China, in turn, has imposed 10 per cent retaliatory tariffs.
In an earlier Truth Social post, Trump had criticised China for sending letters to multiple countries outlining new export controls on rare earth minerals — materials essential for manufacturing advanced technologies such as smartphones, electric vehicles, military equipment, and renewable energy systems.
He argued that Beijing’s dominance in this sector gave it an unfair advantage and said no country should be allowed to hold the world “captive” through such policies, AFP reported.
The latest dispute also cast doubt on a planned meeting between Trump and Xi at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea — which would have been their first face-to-face encounter since Trump returned to office in January.
Trump later told reporters that while he had not officially cancelled the meeting, he was uncertain if it would take place, saying he would attend the summit regardless but that “we’ll see” about the meeting with Xi.