Donald Trump has threatened to impose 100% tariffs on Chinese goods next month, accusing Beijing of “very hostile” actions after it tightened export controls on rare earth materials vital to US industries.
The president said the new tariffs could take effect on 1 November “or sooner” and warned of additional countermeasures, including export limits on US software.
“I never thought it would come to this,” Trump wrote on Truth Social. “Ultimately, though painful, it will be good for the U.S.A.”
The threat sparked a sharp sell-off on Wall Street. The S&P 500 fell 2.7%, the Dow Jones dropped 1.9%, and the Nasdaq slid 3.6%. Tech giant Nvidia lost nearly 5%.
Relations between Washington and Beijing had recently thawed, with both sides reducing tariffs earlier this year. But Trump’s remarks threaten to undo that fragile progress.
A planned meeting with Chinese president Xi Jinping later this month now appears in doubt. “There seems to be no reason to meet,” Trump said.
Beijing’s expanded export controls, adding five more rare earth materials to its restricted list, have intensified global supply fears. China produces more than 90% of the world’s processed rare earths — essential for electric vehicles, electronics, and jet engines.
Trump accused China of trying to “hold the world captive” through resource dominance, but claimed the US holds “much stronger monopoly positions” of its own.
The president defended his tariff-heavy policy as a way to strengthen the American economy, though economists warn it could raise prices for US consumers and fuel further market instability.
