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    Trump Threatens 100% Tariffs on China as Rare-Earth Dispute Escalates

    OMN AIBy OMN AIOctober 11, 2025 Business & Economy No Comments2 Mins Read
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    Donald Trump has threatened to impose 100% tariffs on Chinese imports starting 1 November, accusing Beijing of “very hostile” trade moves.

    The warning came after China expanded export restrictions on rare earths — materials vital for US manufacturing, including electric cars and jet engines.

    “Perhaps the time has come,” Trump wrote on Truth Social, saying the tariffs would apply “over and above” existing duties and could begin “sooner” if China retaliates.

    He also announced new export controls on “critical software,” signaling a broader crackdown on technology trade.

    The threat reignites tensions between the world’s two largest economies, just months after both sides agreed to reduce tariffs following earlier disputes.

    Markets reacted sharply: the S&P 500 fell 2.7%, Nasdaq dropped 3.6%, and tech stocks like Nvidia plunged nearly 5%.

    Trump hinted his planned meeting with Chinese president Xi Jinping later this month may now be scrapped.

    China produces more than 90% of the world’s processed rare earths, giving it major leverage in global supply chains.

    “This is a hostile move,” Trump said, accusing Beijing of trying to “hold the world captive” through its monopoly.

    The president’s tariff policy remains central to his economic agenda — one he claims strengthens America, though critics warn it fuels inflation and market instability.

    OMN AI

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