US-China Trade Tensions Escalate: Trump Hits Back at China’s Rare Earth Ban with 100% Tariffs, Warns of New Trade War
Trump Announces 100% Tariff After China Bans Rare Earth Exports: Effective From November 1: The already strained trade relations between the United States and China took a sharp turn on Friday, as former U.S. President Donald Trump announced a sweeping 100% tariff on Chinese goods, effective November 1, 2025, in response to China’s expanded ban on rare earth mineral exports.
In a post on Truth Social, Trump accused China of adopting a “never-before-seen aggressive stance” in international trade. He revealed that the Chinese government had issued a “hostile letter to the world,” announcing comprehensive export controls that will affect nearly every product, including rare earth elements essential for high-tech and military applications.
“It turns out that China has taken an exceptionally aggressive stance on trade… This is clearly a well-planned scheme, hatched years in advance,” Trump wrote. “It is morally reprehensible and unprecedented.”
Tariffs and Export Controls from November 1
Trump declared that unless China reverses its decision, the U.S. will impose a 100% tariff on Chinese imports, a figure higher than any current duty, beginning November 1, 2025. He also announced upcoming export controls on critical U.S. software, which will be enforced from the same date.
“If any further action or change is taken by China before or on that date, the tariffs will go into effect — and they will be massive,” Trump warned.
Will Trump Meet Xi Jinping?
When asked about a scheduled meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) Summit in South Korea, Trump responded ambiguously:
“No, I haven’t canceled the meeting, but I don’t know if it will happen. They made a sudden move that shocked the world.”
He left the door open to reversing tariffs if China lifts its export controls but emphasized, “We’ll see what happens.”
China Tightens Grip on Rare Earth Elements
China’s Ministry of Commerce has announced new restrictions on the export of rare earth elements, adding holmium, erbium, thulium, europium, and yttrium to its already limited list. These minerals are critical components in products ranging from smartphones and electric vehicles to fighter jets and missile systems.
Export licenses will now be mandatory not just for the materials themselves but also for technologies related to mining, smelting, and magnet production. The ban now covers 12 out of 17 key rare earth elements.
China claims the move is aimed at protecting national security and preventing these materials from being used in military or sensitive technologies, particularly by foreign nations.
Additionally, new restrictions have been imposed on graphite anode materials, which are vital in the production of lithium batteries used in electric vehicles and energy storage.
A New Phase in the US-China Trade War?
The escalating tit-for-tat measures between the world’s two largest economies mirror earlier tensions during Trump’s presidency, but the new developments suggest a potentially more disruptive phase. Analysts say Beijing’s control over rare earth exports is a strategic response to U.S. export restrictions on semiconductors and AI chips, indicating a deepening geopolitical rift.
What’s at Stake?
- Global supply chains could face severe disruptions.
- Tech, EV, and defense industries may experience material shortages.
- A new trade war could impact global markets, inflation, and investment flows.
As November 1 approaches, the international community will be closely watching whether diplomatic dialogue can prevent another full-blown trade conflict—or if the world is heading into a new chapter of economic nationalism and resource weaponization.
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