Trump announces additional 100% tariff on China, plans export curbs on tech
Trump announces additional 100% tariff on China, plans export curbs on tech
M.U.H
11/10/202527
US President Donald Trump has announced plans to impose an additional 100 per cent tariff on Chinese goods and introduce export controls on all critical software from November 1, 2025, a move that could sharply escalate trade tensions with Beijing.
The announcement, made in a lengthy Truth Social post, accused China of taking an “extraordinarily aggressive position on trade” and sending what Trump described as a “hostile letter to the world.” He claimed Beijing intended to impose “large-scale export controls on virtually every product they make, and some not even made by them,” calling it “a moral disgrace in international trade.”
Trump said the United States’ response would be “immediate and severe.” “Starting November 1, 2025 (or sooner, depending on any further actions taken by China), the United States will impose a 100 per cent tariff on China, over and above any tariff that they are currently paying. We will also impose export controls on any and all critical software,” he wrote.
Trump said the United States’ response would be “immediate and severe.” “Starting November 1, 2025 (or sooner, depending on any further actions taken by China), the United States will impose a 100 per cent tariff on China, over and above any tariff that they are currently paying. We will also impose export controls on any and all critical software,” he wrote.
Markets tumble as trade fears return
Global financial markets reacted sharply to the announcement. The S&P 500 Index fell 2.7 per cent — its steepest single-day drop since April — while the Nasdaq 100 plunged 3.5 per cent. The Dow Jones Industrial Average declined 0.52 per cent, and soybean futures dropped nearly 2 per cent amid fears that Beijing could again restrict imports of US agricultural products.
Beijing retaliates with rare earth export curbs
Within hours, China’s Ministry of Commerce announced new export controls on rare earth materials and related technologies, citing national security reasons. Exporters of rare earth-containing products will now need special licences.
Beijing also introduced port fees on US ships, launched an anti-trust investigation into Qualcomm Inc, and hinted at further measures targeting US firms operating in China. Some of these steps are set to take effect after November 8, leaving a brief window for negotiation before the planned Xi–Trump summit later this month.
US may restrict Boeing exports to China
US could impose export controls on Boeing plane parts in response to China’s export limits on rare earth minerals, President Donald Trump said.
In his address to reporters at the White House on Friday, Trump highlighted that China relies heavily on Boeing aircraft and parts, noting the potential impact of such measures. Boeing is currently in talks to sell up to 500 jets to China, marking its first major Chinese order since Trump’s first term, though analysts say any financial impact would likely be small.
China has orders for at least 222 Boeing jets and operates 1,855 of the US manufacturer’s planes, mainly the 737 single-aisle model. A ban on spare parts would also affect CFM International, which produces the LEAP engine for the 737 MAX, as well as engines for the 777 and 787.
By comparison, Airbus has 185 orders from Chinese customers and produces A320 jets at its Tianjin facility. China is also developing its own COMAC C919 jet, but USexport restrictions on Western-supplied parts have slowed its production, with only five of the 32 jets expected this year delivered so far.
Trump leaves door open for negotiation
Despite his tough stance, Trump indicated that he might reconsider the tariffs if Beijing withdraws its planned restrictions on rare earth exports, critical to semiconductor and defence manufacturing. “That’s why I made it Nov 1st — we’ll see what happens,” he said.
China has orders for at least 222 Boeing jets and operates 1,855 of the US manufacturer’s planes, mainly the 737 single-aisle model. A ban on spare parts would also affect CFM International, which produces the LEAP engine for the 737 MAX, as well as engines for the 777 and 787.
By comparison, Airbus has 185 orders from Chinese customers and produces A320 jets at its Tianjin facility. China is also developing its own COMAC C919 jet, but USexport restrictions on Western-supplied parts have slowed its production, with only five of the 32 jets expected this year delivered so far.
Trump leaves door open for negotiation
Despite his tough stance, Trump indicated that he might reconsider the tariffs if Beijing withdraws its planned restrictions on rare earth exports, critical to semiconductor and defence manufacturing. “That’s why I made it Nov 1st — we’ll see what happens,” he said.
Soybean trade again at risk
The renewed confrontation also threatens ongoing talks to restore China’s imports of US soybeans — a key export for American farmers. US Trade Representative Jamieson Greer said Washington was exploring new markets in Vietnam and Cambodia, as well as domestic industrial uses for soybeans, to cushion potential losses.
Rare earths back at the centre of dispute
Rare earths remain the flashpoint in the trade confrontation. Earlier this year, after Trump raised tariffs, Beijing retaliated by suspending rare earth exports before both sides reached a temporary truce. The latest measures now risk reigniting that dispute, imperilling industries dependent on these critical minerals used in electronics, electric vehicles, and weaponry.
A shift in tone before the Xi–Trump summit
Trump’s announcement marked a sharp departure from his more conciliatory tone just a day earlier, when he had expressed optimism about persuading President Xi Jinping to lift the soybean import suspension. “He’s got things he wants to discuss with me, and I have things to discuss with him,” Trump had said on October 9.
Hours earlier, in another post, Trump had accused China of “lying in wait” and acting against the US as he prepared to travel to the Middle East to mark the Israel–Hamas peace deal. “The Chinese letters were especially inappropriate,” he wrote. “This was the day that, after three thousand years of bedlam and fighting, there is peace in the Middle East.”
Trump added that he was scheduled to meet Xi at the upcoming APEC Summit in South Korea in two weeks, but “now there seems to be no reason to do so.”
(business-standard)
