President Donald Trump has reignited the U.S.-China trade war by announcing 100% tariffs on Chinese imports, in addition to the existing 30% duties, starting November 1. He cited Beijing’s tighter export controls on rare earth materials as justification for new export limits on key software.
“The United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying,” Trump posted on Truth Social. “Also on November 1st, we will impose Export Controls on any and all critical software.”
Trump’s statement sent shockwaves through the markets. The Dow fell 1.9%, the S&P 500 dropped 2.7%, and the Nasdaq slid 3.5%. Analysts warn the move could undo months of relative trade calm between the two largest economies.
Despite Trump’s push for U.S. manufacturing, America still depends heavily on Chinese electronics, furniture, and clothing. Earlier this year, both nations lowered tariffs after rates hit 145%, briefly easing tensions and boosting markets.
Experts say the renewed conflict has been building for months. Washington accuses Beijing of breaking rare earth supply deals, while both countries recently imposed higher shipping fees on each other’s vessels.
However, Trump’s aggressive tariff policies could soon face limits as the U.S. Supreme Court prepares to rule on his tariff authority.
Trump’s proposed 130% total tariff marks his boldest escalation yet in a trade battle that shows no sign of slowing.
