Trump ramps up trade war with China as 100% tariffs hit new heights

A Sudden Shift in Trade Relations

President Donald Trump has made a bold move in the ongoing trade tensions with China, announcing a 100% tariff on Chinese goods, "over and above any Tariff they are currently paying." This new policy is set to take effect on November 1 and specifically targets rare-earth exports from China. The implications of this decision are far-reaching, affecting all countries without exception.

Trump claimed that China had taken an extraordinarily aggressive position on trade, sending an extremely hostile letter to the world, stating that they were going to impose large-scale export controls on virtually every product they make, including some not even made by them. He described this as an unprecedented move in international trade, calling it a moral disgrace in dealing with other nations.

Rare Earth Exports and Strategic Moves

On Thursday, Beijing expanded its restrictions on rare earth exports, adding more minerals to the list under control and extending controls targeting the overseas use of its technologies. This change reportedly affects the U.S. acutely, as China has increased regulations on the use of its products for military purposes. Trump called the move a disgrace, emphasizing that it's absolutely unheard of in international trade.

The timing of these actions is significant, as it occurs just before a meeting between Xi Jinping and Trump at the APEC summit in South Korea later this month. Administration officials see this as an apparent effort from Beijing to secure leverage before the meeting.

A Chaotic Response

Trump attempted to take leverage back, posting on Truth Social, “I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so.” This comment sparked panic across both countries, and Trump was prodded later that day whether the meeting was really cancelled, in which he backpedaled with impressive speed.

"I haven’t cancelled, but I don’t know that we’re going to have it. But I’m going to be there regardless, so I would assume we might have it."

The White House viewed China’s increased restrictions as an escalation of the trade war, which required a measured response. Trump also criticized China for choosing Thursday for their announcement.

A Significant Moment in History

The Chinese letters were especially inappropriate in that this was the Day that, after three thousand years of bedlam and fighting, there is PEACE IN THE MIDDLE EAST.

Anxiety and Strategic Concerns

Trump’s comments, and the administration response outline that there is clearly anxiety tied to China’s hold over a market the U.S. sees as critical to its military. Chinese technology and rare earth companies are heavily involved in U.S. national defense strategies, with CNN reporting that top Trump officials have had “rounds and rounds of phone calls” with Chinese tech companies and that the message has been delivered “loud and clear.”

The administration is now focused on ending its reliance on Chinese rare earth materials. The U.S. Department of War (formerly the Department of Defense) signed a $400 million partnership with MP Materials Corp in July 2025, the only American-based producer of rare earth magnets and materials.

Market Reactions

Trump’s comments also triggered a ‘mini-crash’ of the tech-reliant Nasdaq, with the index falling 3.56 percent. The Dow and S&P also both slid, but not as dramatically as the Nasdaq.

A History of Trade Tensions

Trump started the trade war with China in February 2018, with tariffs on solar panels and washing machines. Trump continued to impose tariffs throughout his first term. The trade war cooled during the Biden administration, but came to a head in January 2024 after Trump was elected again. Right now, 66 percent of Chinese imports into the United States face a tariff, and 63 percent of US imports face a tariff in China.