- Trump sets 100% tariff on China, tech export curbs from Nov 1.
- Markets drop; S&P 500 falls 2.7% on trade war fears.
- China’s rare earth curbs spark U.S. soybean, tech concerns.
In reaction to China’s scheduled foreign trade limitations for rare earth materials and relevant technologies, U.S. President Donald Trump declared- starting from November 1, 2025, or even earlier- a 100% tariff on Chinese imports.
These levies, in addition to current 30% duties, would basically increase the cost of imports to about 130%, thus almost reaching the 145% maximum level observed earlier this year before a U.S.-China trade truce. Besides, Trump indicated that he will be setting up restrictions on the export of U.S. critical software, thereby further escalating tensions with Beijing.
Through his Truth Social post, Trump labeled China’s move, which he recounted as “a hostile letter” signifying total export restrictions from November 1, “a moral disgrace.” In response, China’s Ministry of Commerce introduced stricter licensing for rare earth exports, additional fees for U.S. ships at Chinese ports, and an antitrust investigation against Qualcomm citing security of the nation.
Also Read: China Tightens Export Rules on Critical Rare Earths
The measures, some of which will be implemented after November 8, deeply affect the industries that continue to depend on rare earth materials, which are seen as essential for semiconductors, electric vehicles, and defense. Global markets reacted dramatically: the S&P 500 lost 2.7%, its biggest downturn after April, the Nasdaq 100 declined 3.5%, and the Dow Jones dropped 0.52%.
Consequently, soybean futures fell by almost 2% as investors feared that China would impose new restrictions on imports of U.S. agricultural goods. Trump hinted that he could change his mind if China lifted its bans, saying, “This is the reason I picked November 1—we shall see what happens.”Moreover, the U.S. Trade Representative implemented 100% tariffs on Chinese harbor hardware and suggested up to 150% levies on other freight devices, escalating the restrictions.
While the U.S.-China negotiations have stalled, the U.S. is targeting new markets for soybeans in Vietnam and Cambodia. The dispute that has become more serious and is revolving around rare earth metals, putting the Xi-Trump summit planned at the APEC conference in South Korea at risk of happening, with Trump wondering why it should be held.