WASHINGTON – US President Donald Trump has reignited the trade war with China, announcing an additional 100% tariff on Chinese goods and threatening to cancel his upcoming meeting with President Xi Jinping.
Trump said the move comes in retaliation for what he described as Beijing’s “extraordinarily aggressive” decision to impose export restrictions on rare earth minerals, vital materials used in smartphones, electric vehicles, and defense technology.
Read More: Beijing Targets U.S. Ships With Special Port Fees
“It is impossible to believe that China would have taken such an action, but they have, and the rest is history,” Trump wrote on Truth Social. The new tariffs will take effect on November 1, along with fresh US export controls on “any and all critical software.” Financial markets reacted sharply — the Nasdaq fell 3.6% and the S&P 500 dropped 2.7%, as investors worried about renewed trade tensions between the world’s two largest economies.
Currently, Chinese imports face 30% US tariffs, while Beijing has retaliated with 10% tariffs on American goods. Trump’s announcement doubles down on his earlier measures, first introduced during his previous term, accusing China of unfair trade practices and aiding the fentanyl trade.
Read More: US to Impose 100% Tariff on Chinese Imports from November
The US president also hinted that the long-anticipated meeting with Xi Jinping at the APEC summit in South Korea might be scrapped. “I haven’t canceled, but I don’t know that we’re going to have it,” he told reporters at the White House. Trump accused China of “lying in wait” and said other nations had reached out to Washington, frustrated by Beijing’s sudden trade restrictions.
Meanwhile, China responded by announcing “special port fees” on US-built ships and hinted at further countermeasures. The dispute over rare earth elements — materials China largely controls — adds a new layer of tension to an already fragile US-China relationship. Trump concluded that his administration would “not allow China to hold the world captive,” signaling tougher policies ahead.