Former U.S. President Donald Trump reignited trade tensions with China on Friday by announcing an additional 100% tariff on Chinese goods, effective November 1. He also threatened to cancel a planned meeting with Chinese President Xi Jinping at the APEC summit, citing China’s recent export controls on rare earth minerals. Trump called China’s actions “extraordinarily aggressive” and accused them of trying to hold the world “captive” through their dominance in rare earth production—materials essential for tech, defense, and renewable energy sectors.
Markets reacted negatively, with the Nasdaq dropping 3.6% and the S&P 500 falling 2.7%. Trump further announced new U.S. export controls on critical software and criticized Beijing’s trade practices and alleged role in the fentanyl trade. China’s current retaliatory tariffs stand at 10%.
He expressed confusion over China’s timing and accused it of hostility after months of relatively stable relations. Trump also raised concerns over Chinese influence in global trade and technology, including the TikTok ownership issue and restricted Chinese devices. Beijing has yet to officially respond to Trump’s remarks or tariff threat.
