Donald Trump
By Abayomi Grace
US President Donald Trump has announced a new round of 100% tariffs on Chinese imports, effective November 1, 2025, in response to China’s recent export controls on critical rare earth elements. This move escalates the ongoing trade conflict between the US and China, with Trump stating that China’s actions are “extraordinarily aggressive” and “hostile”. The tariffs will be imposed on top of the existing 30% tariffs currently in place, and are expected to affect approximately $500 billion in annual imports.
The tariffs are part of a broader strategy by the Trump administration to address China’s trade surplus, protect US industries, and counter national security concerns. Rare earth elements are crucial for manufacturing electronics, clean energy technologies, and defense applications, and China dominates the global production and processing of these materials.
According to Trump, China’s export controls on rare earth minerals are “unprecedented” and “a moral disgrace in dealing with other nations”. He emphasized that the US holds strong monopoly positions in key elements and will impose export controls on “any and all critical software” from American firms. The move has triggered a sharp sell-off on Wall Street, with the Nasdaq down 3.6% and the S&P 500 down 2.7%.
The tariffs are expected to generate $120-$150 billion annually for the US Treasury, funding domestic manufacturing initiatives. However, they may also lead to higher prices for consumers and disrupt global supply chains. The US and China have previously engaged in a tariff-driven trade war, with rates reaching 145% on US imports and 125% on Chinese imports, before negotiations lowered the rates to 30% and 10%, respectively.
The development has also raised questions about the planned meeting between Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea. Trump stated that there seems to be no reason to meet, given China’s actions, but later clarified that he hadn’t canceled the meeting. The move is seen as a bold escalation in the US-China trade war, with potential implications for global markets and trade dynamics .
