US President Donald Trump has announced a significant escalation in his trade war with China. He will impose a 100% tariff on all Chinese goods starting on November 1. This decision follows Beijing’s new export controls on rare-earth minerals. These materials are crucial for semiconductors, fighter jets, and other high-tech applications.
Why Trump hit china with 100% tariffs
In a post on Truth Social, Trump accused China of taking an “extraordinarily aggressive” stance and called its actions “a moral disgrace in international trade.” He warned that the tariffs could take effect sooner if China takes additional steps.
US officials believe China’s export controls were a calculated move to gain leverage before the APEC summit in South Korea, where Trump and Chinese President Xi Jinping were expected to meet. That meeting is now uncertain. Trump stated he sees no reason to meet Xi, but he hasn’t officially canceled the meeting.
How does China affect America industrial sectors
China’s rare-earth restrictions directly target America’s industrial and defense sectors. The US has invested $400 million in MP Materials, the only US rare-earth producer, to build domestic capacity. However, the US still relies heavily on Chinese supply chains.
This move is also political. Trump has positioned himself as tough on trade. With markets on edge, he is signaling to his supporters that America will not be pushed around. Trump uses tariffs as leverage, announcing broad measures to pressure rivals into negotiations. This action may be less about collecting tariffs and more about getting China to come back to the negotiating table on Washington’s terms.
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