Trump hits back at restrictions on China’s rare earth minerals, threatening 100% tariffs

President Donald Trump declared on Friday that he will impose a 100% tariff on all imports from China, while also imposing export controls on “any and all critical software” from the United States.

This is the latest move in what appears to be an escalating trade conflict between the United States and China. In a post from Truth Social When announcing the tariffs, Trump also said that this new tariff would be “in addition” to any tariffs already imposed on Chinese imports. (CNBC reports that while U.S. tariffs on Chinese imports vary depending on products, the basic rate is already 40%.)

Earlier this week, China announced that it is tightening its export controls on rare earth minerals, requiring foreign companies to apply for a license if they want to export products with even a small amount of these minerals. China is the world’s largest producer of rare earth minerals, which are used in essential products for the technology industry, including semiconductors and solar panels.

In his publication, Trump described China’s announcement as “absolutely unprecedented in international trade and a moral disgrace in dealing with other nations”.

“It is impossible to believe that China would have taken such action, but they did, and the rest is history,” he wrote.

According to Trump, these new tariffs will take effect on November 1st. Trump reportedly told journalists that tariffs could still be reduced and that he would not necessarily cancel a scheduled meeting with President Xi Jinping.

Shares fell following Trump’s announcement, with the Dow Jones Industrial Average falling 1.9% at market close on Friday, the S&P 500 falling 2.71% and the Nasdaq falling 3.56%. Some technology companies were particularly hard hit, with Nvidia and Tesla down around 5% at market close.

The news also affected crypto markets, leading to sell-offs that were reportedly 10x the dollar value of liquidations during the FTX meltdown.