In a dramatic escalation of the US-China trade conflict, President Donald Trump has announced a sweeping 100% tariff on all Chinese imports set to take effect on November 1, 2025. This aggressive measure is a direct response to China’s recently imposed export restrictions on crucial rare earth elements. Trump stated on social media that the new tariff will be applied on top of any existing duties, effectively doubling the cost of many goods originating from China. Furthermore, Washington is preparing to implement its own export controls on vital software and aircraft parts.
The catalyst for this significant tariff hike appears to be China’s move to restrict the export of rare earth minerals. With China controlling approximately 90% of global rare earth processing, these elements are indispensable for a wide array of modern technologies, from smartphones and electric vehicles to advanced military hardware like fighter jets and missile systems. Beijing’s decision to expand its restricted list and extend controls to the entire production chain, including mining and smelting, has been characterized by Trump as an “extremely hostile letter to the World.”
This 100% tariff represents a significant economic blow, potentially doubling the price for American importers and leading to higher consumer costs across various sectors including electronics, clothing, and toys. The move signals a potential acceleration of economic decoupling between the two global economic giants. The diplomatic landscape has also been affected, with earlier indications of a meeting between Trump and Chinese President Xi Jinping now uncertain, though the door for dialogue remains slightly open.