WASHINGTON: Former U.S. President Donald Trump announced plans to impose an additional 100% tariff on all Chinese imports starting November 1, 2025 — or sooner — in response to China’s export restrictions on rare earth elements. The move marks a sharp escalation in trade tensions between the world’s two largest economies.
Trump made the announcement on his social media platform, Truth Social, saying the new tariff will be applied “over and above any tariff that China is currently paying.” He said the measure was necessary because of China’s actions to limit exports of key materials critical to U.S. industries.
The declaration came after financial markets closed Friday, raising fears of renewed global trade turmoil. Analysts warn that doubling tariffs — on top of the existing 30% rate — could severely disrupt trade flows, heighten inflation, and rattle already fragile markets.
Trump also hinted that his planned meeting with Chinese President Xi Jinping during his upcoming Asia trip may be canceled. “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,” he wrote.
Despite his firm tone, Trump has a history of walking back such threats — a pattern that investors have dubbed the “TACO trade,” short for Trump Always Chickens Out.
The former president further stated that the U.S. would respond by implementing its own export controls on “any and all critical software” produced by American firms.
Trump’s Asia tour is expected to include stops in Malaysia, Japan, and South Korea, where the now-uncertain meeting with Xi was to take place ahead of the Asia-Pacific Economic Cooperation (APEC) summit.
Economists warn that if enforced, the steep tariffs could reignite trade tensions to levels not seen since 2018, threatening global supply chains and adding political pressure at home amid a weakening job market and potential government shutdown effects.
