Saturday, March 29, 2025
The US-China trade war intensified on Friday after President Donald Trump announced sweeping new tariffs of 100% on all Chinese imports. The move, set to take effect on November 1, 2025, is in direct response to China’s decision to restrict exports of rare earth minerals—critical components for electronics, batteries, and defense technologies.
Trump declared the step as a retaliation against what he called China’s “unprecedented aggression” and a “moral crime.” With the new measures, the effective tariff rate on Chinese goods could surge to 140%, drastically escalating one of the most significant trade disputes in modern history.
Posting on Truth Social, Trump accused Beijing of attempting to “hold the world hostage” through export controls. He confirmed that the new tariffs could even be imposed earlier if China escalates further. Additionally, the U.S. will impose export restrictions on critical software, aiming to hit China’s tech sector hard.
Trump wrote:
“China has taken a highly aggressive stance and has been planning this for years. From November 1, 2025, the United States will impose an additional 100% tariff on all Chinese imports and restrict the export of vital software. China made its move, and now history will record the consequences.”
China recently announced strict controls on rare earth mineral exports, which are essential for semiconductors, EV batteries, and consumer electronics. The U.S. currently relies on China for more than 80% of these materials. Trump labeled Beijing a “cheat and enemy,” warning that the move would “make life difficult for every country in the world.”
The announcement triggered immediate turmoil in financial markets. On Wall Street, the Dow Jones Industrial Average dropped 2.5%, while the Nasdaq fell over 3%. Asian markets mirrored the slide, with Hong Kong’s Hang Seng Index plunging 4%. Analysts warned that higher tariffs could raise consumer costs in the U.S., particularly for electronics, toys, and appliances.
Economists at Wells Fargo estimated that the effective tariff rate on Chinese imports, currently at around 40%, could more than double under Trump’s latest move. This could fuel inflationary pressures at a delicate time for the global economy.
The timing also casts a shadow over the upcoming APEC Summit in South Korea, where Trump was scheduled to meet Chinese President Xi Jinping. Earlier in the day, Trump threatened to cancel the meeting, though later told reporters at the White House, “We’ll see what happens,” leaving uncertainty hanging over the crucial talks.
With markets on edge and trade tensions at their peak, the next few weeks could prove decisive in shaping not only U.S.-China relations but also the stability of global commerce.
