Trump Threatens a 100% Tariff on China After Beijing Restricts Rare Earth Exports

On October 10, 2025, President Trump said he would impose a 100 percent tariff on Chinese goods "over and above any tariff that they are currently paying," effective November 1 "or sooner, depending on any further actions or changes taken by China." He also said the United States would impose export controls "on any and all critical software," and indicated he saw "no reason" to keep a planned meeting with Xi Jinping at the APEC summit in South Korea. The announcement responded to rules China issued on October 9 requiring foreign companies to obtain approval before exporting items containing even trace amounts of Chinese-sourced rare earths, minerals used in jet engines, radar, electric vehicles and consumer electronics. U.S. tariffs on Chinese goods then averaged roughly 40 percent. Markets fell sharply: the S&P 500 dropped 2.7 percent, the Nasdaq 3.6 percent, and the Dow about 900 points.

The exchange showed both governments reaching for chokepoints — American market access against Chinese control of processed rare earths — with the threatened rate set by presidential announcement rather than through a formal trade proceeding.

The threatened tariff did not take effect as announced; Trump met Xi on October 30, 2025 during his Asia trip.