Trump Declares Monumental 100% Escalation of Tariffs on China
President Donald Trump made a shocking announcement on Friday, stating his intent to impose an additional 100% tariff on Chinese imports. This move, set to take effect from November 1, signifies a dramatic escalation in the ongoing trade war between the world’s two largest economies.
The decision comes as a response to China’s new export controls on rare earth minerals, a move that Trump has labeled as “extraordinarily aggressive” and “a moral disgrace.” At present, Chinese goods are subjected to tariffs of approximately 40%. The new levy would effectively impose duties of around 130-140% on Chinese products.
This announcement triggered a massive stock market sell-off, with the S&P 500 dropping 2.7% and the Dow falling 879 points – marking the worst single-day decline since April.
Trump also issued a threat to cancel his scheduled meeting with Chinese President Xi Jinping at the upcoming APEC summit in South Korea, stating, “there seems to be no reason to do so.”
The tariff threat specifically targets China’s control over rare earth minerals. These minerals are essential for high-tech industries, including:
- Semiconductors
- Defense equipment
- Electric vehicles
It’s worth noting that around 70% of the global supply of these critical materials originates from China.