Donald Trump Threatens 100% Tariffs on China as Rare Earths Dispute Turns into Global Flashpoint
President Donald Trump has warned that the U.S. will impose an extra 100% tariff on all Chinese imports from November 1, accusing Beijing of taking an “extraordinarily aggressive position” on trade. The announcement, made Friday night on Trump’s Truth Social platform, comes after China tightened controls on rare earth exports — a move analysts say could cripple U.S. manufacturing if left unchecked.
Trump described China’s new export restrictions as “large-scale” and “hostile to global trade,” framing the response as retaliation meant to protect American industry and national security.
“An Unprecedented Position”
“Starting November 1st 2025, the United States will impose a tariff of 100% on China, over and above any tariff they are currently paying,” Trump declared.
“It is impossible to believe China would have taken such an action, but they have — and the rest is history.”
He added that Washington would soon restrict exports of critical U.S. software to Chinese firms.
Rare Earths at the Center of the Conflict
China’s restrictions target rare earth minerals — elements vital for electric vehicles, wind turbines, and missile guidance systems. By requiring state approval for exports, Beijing effectively holds leverage over global tech manufacturing.
Economists note that rare earths have become the new oil in the geopolitical energy race.
According to Bloomberg, China refines about 80% of global rare-earth output, meaning any long-term disruption could ripple across defense, energy, and consumer sectors.
Diplomatic Fallout and Xi Meeting in Doubt
Trump also said he now sees “no reason” to meet President Xi Jinping at the upcoming APEC Summit in South Korea.
The White House has not formally confirmed the meeting’s cancellation, but senior officials privately acknowledge that the tone between the two capitals has “cooled considerably.”
The trip was set to include visits to Japan and Malaysia — both countries that rely heavily on Chinese rare-earth imports — before ending in Seoul.
Wall Street’s Shock Reaction
Markets recoiled at the announcement. The S&P 500 fell 2.7% on Friday — its sharpest drop since April — while the Nasdaq plunged 3.6%, with semiconductor and EV stocks leading losses.
“Investors fear this could reignite inflation and fracture global supply chains all over again,” said strategist Edward Lang of Wellspring Capital.
Beijing’s Response
China’s Ministry of Commerce condemned the tariff threat as “economic coercion” and hinted at counter-sanctions.
State media outlet Global Times called Trump’s remarks “reckless” and said Beijing “will respond in kind.”
Legal Framework: Can the President Impose 100% Tariffs?
Under Section 301 of the Trade Act of 1974, the U.S. president can impose tariffs or restrictions on imports if another country’s trade practices are deemed “unjustifiable or unreasonable” and burden U.S. commerce.
The International Emergency Economic Powers Act (IEEPA) and Tariff Act of 1930 (Section 232) also grant broad authority to act on national-security grounds. However, these powers are not unlimited — Congress can theoretically override them, and foreign partners can challenge them at the World Trade Organization (WTO).
In 2019, similar Trump-era tariffs faced WTO scrutiny after China filed complaints, arguing that unilateral measures violated multilateral trade rules. If the 100% tariff goes forward, Beijing could again file for arbitration, potentially sparking a protracted legal and diplomatic battle rather than immediate economic resolution.
“This isn’t just politics — it’s a test of how much presidential trade authority truly extends,” explains Dr. Megan Liu, professor of international law at Georgetown University. “It raises constitutional questions about checks and balances when executive trade powers are used as foreign-policy weapons.”
Economic and Strategic Risks
1. Supply Chain Shock – U.S. manufacturers relying on Chinese electronics and metals could see costs surge.
2. Inflation Pressure – Doubling import duties risks pushing consumer prices higher before the holiday season.
3. Diplomatic Fallout – A canceled Xi meeting could freeze cooperation on AI, climate, and defense.
4. Retaliation – China may restrict rare-earth exports further or target U.S. tech companies in kind.
What Happens Next
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Nov 1, 2025: Tariffs scheduled to take effect unless China reverses its export curbs.
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Late Oct 2025: Decision on Trump-Xi meeting at APEC.
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Winter 2025: Possible WTO complaint and retaliatory measures.
For now, markets and policymakers alike are bracing for another round in what some analysts already call “Trade War 2.0.”
