Former U.S. President Donald Trump has threatened to impose a 100% tariff on Chinese imports starting next month, accusing Beijing of “very hostile” actions by restricting exports of rare earth elements vital to American industry, reports The WP Times with reference to The Guardian.
Trump’s announcement reignited tensions between Washington and Beijing, causing Wall Street to fall sharply and raising the prospect of a renewed trade war between the world’s two largest economies. Relations had improved over the summer after Trump agreed to significantly reduce tariffs on Chinese goods, but his latest threat signals a possible reversal.
The president stated the 100% tariffs would apply “over and above” existing duties and could take effect on 1 November “or sooner” if China retaliates. He also announced new U.S. export controls on “any and all critical software.”
On his Truth Social account, Trump wrote: “I never thought it would come to this but perhaps, as with all things, the time has come. Ultimately, though potentially painful, it will be a very good thing, in the end, for the U.S.A.” He further added that a massive increase in tariffs on Chinese products is under consideration, along with other countermeasures.
Trump suggested that a planned meeting with Chinese President Xi Jinping in South Korea later this month might be canceled, claiming “there seems to be no reason” to meet. Just four months ago, he had described U.S.-China relations as “excellent” after approving a tariff reduction deal.
The volatility of the situation affected global markets. The S&P 500 fell 2.7%, the Dow Jones dropped 1.9%, and the Nasdaq sank 3.6%. Shares of Nvidia fell nearly 5%, while London’s FTSE 100 dropped 0.9%.
China produces over 90% of the world’s processed rare earths and rare-earth magnets, critical for industries ranging from electric vehicles to aircraft engines. Earlier this week, Beijing expanded export controls by adding five new materials, following a similar move in April that caused global supply shortages.
Trump criticized China for allegedly monopolizing rare earth production and maintaining a “rather sinister and hostile” position, while asserting that the U.S. holds stronger global monopolies. His tariff strategy remains a central element of his economic policy, aimed at boosting the U.S. economy and generating trillions in revenue.
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