Trump threatens 'massive increase' of tariffs on Chinese goods in response to limits on export of rare earth metals

President Donald Trump announced Friday that his administration will impose an additional 100% tariff on Chinese imports—on top of the existing 30% duties—starting November 1 or possibly sooner. The move marks a sharp escalation in trade tensions after several months of relative calm between Washington and Beijing.

“The United States of America will impose a tariff of 100% on China, over and above any tariff that they are currently paying,” Trump said in a Truth Social post Friday afternoon. He added that beginning November 1, the U.S. will also implement new export controls on “any and all critical software.”

The announcement follows Beijing’s decision to expand export restrictions on rare earth minerals, materials crucial to the production of many electronics. In response, Trump appeared to cancel a planned meeting with Chinese President Xi Jinping set for later this month in South Korea.

Markets reacted swiftly to the news. Stocks fell sharply on Friday, with the Dow Jones Industrial Average dropping 878 points, or 1.9%, the S&P 500 sliding 2.7%, and the Nasdaq plunging 3.5%, as investors worried about a repeat of the spring’s tariff surge that sent rates on Chinese imports as high as 145%.

While Trump has not always followed through on his tariff threats, the potential for further trade disruption has renewed concern among businesses and consumers. Despite recent efforts to diversify supply chains, the U.S. and China remain deeply interdependent—America still relies on China for hundreds of billions of dollars’ worth of goods, particularly electronics, apparel, and furniture, while China remains a major export market for U.S. products.

Trump has continued to pressure CEOs, especially in the technology sector, to relocate manufacturing to the U.S. But he has recently eased his stance as companies pledged hundreds of billions in new domestic investments, even while much of their production continues abroad.

Earlier this year, after imposing tariffs of at least 145% on Chinese imports—effectively halting most trade—Trump carved out an exemption for electronics, reducing their tariff rate to 20%, a move widely seen as an acknowledgment of the industry’s importance to the U.S. economy.