Trump Escalates US-China Trade War, Announces 100% Tariffs

 

Washington. U.S. President Donald Trump has announced a sharp escalation in the trade conflict with China, signaling an end to the fragile economic truce between the world’s two largest economies. The president revealed plans to impose additional 100% tariffs on Chinese exports to the U.S., effective November 1, alongside new export controls on all critical software.

The move comes in response to China’s recent expansion of rare earth element export restrictions, which are vital for technology manufacturing. “It was shocking. I thought it was very, very bad,” Trump said, highlighting the significance of the Chinese measures.

Trump also raised doubts about a previously planned meeting with Chinese President Xi Jinping in South Korea, stating on Truth Social that “now there seems to be no reason to do so,” though he later clarified that the meeting had not been canceled. Beijing has not confirmed the proposed summit.

The announcement triggered a strong market reaction, with U.S. stocks experiencing the largest drop since April. Tech companies, including Nvidia, Tesla, and Amazon, saw significant declines, while the Philadelphia Semiconductor Index fell 6.3%.

Analysts warn that the new export controls on software could severely impact China’s technology sector, including cloud computing and artificial intelligence. Trump also suggested the possibility of additional restrictions on airplanes and airplane parts, indicating a wider trade retaliation strategy.

The U.S.-China relationship now faces its most serious strain in six months, raising concerns over the prospect of a prolonged trade war and potential global economic instability.

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