US President Donald Trump has threatened to impose an additional 100% tariff on Chinese imports beginning November 1, or possibly sooner, in response to Beijing’s new export restrictions on rare earth elements. The move risks reigniting trade tensions between the world’s two largest economies and unsettling global markets.
In a post on Truth Social, Trump accused China of taking “extremely hostile” actions by curbing exports of the critical minerals used in everything from jet engines and radar systems to electric vehicles, smartphones, and laptops. He warned that the US “will impose export controls on any and all critical software” if Beijing does not reverse course.
The President’s remarks come after China announced tighter export controls on rare earth materials and technologies related to their mining, smelting, and recycling. Under the new rules, foreign companies must obtain special permits to ship these metals abroad, and any exports linked to military applications will be rejected outright.
China dominates the global rare earth market, producing about 70% of the world’s supply and handling around 90% of its processing. These minerals are essential for manufacturing high-tech and defense-related equipment, giving Beijing significant leverage in trade negotiations.
Trump’s comments also cast doubt on a planned meeting with Chinese President Xi Jinping later this month in South Korea. “There seems to be no reason to meet,” he said online, though later told reporters the meeting had not been officially cancelled. “I’m going to be there regardless, so I would assume we might have it,” he added.
Financial markets reacted sharply to the latest exchange. The S&P 500 dropped 2.7% on Friday, its worst performance since April, when similar tariff threats from Trump had triggered fears of a global recession. Investors worry that doubling tariffs — on top of the existing 30% already imposed on Chinese goods — could further strain trade flows and dampen global economic growth.
Despite the tough rhetoric, analysts noted Trump’s history of stepping back from drastic trade actions. Some investors have even coined the term “TACO” — short for “Trump Always Chickens Out” — reflecting skepticism that he will follow through on his threats.
The US and China had reached a fragile truce earlier this year after negotiations in Switzerland and the UK led to a scaling down of tariffs. However, Beijing’s recent rare earth curbs have rekindled tensions, underscoring the ongoing battle for control over critical materials that underpin the global technology and defense industries.
