Trump announces 100% tariff on China in response to rare earth controls
President Trump announced Friday that he will increase tariffs on China in response to Beijing’s move to tighten its control over some critical minerals and rare earth elements.
Trump announced on Truth Social that he will impose 100% tariffs on Chinese goods starting November 1 or earlier. These tariffs will replace current duties already imposed on Chinese goods.
The president said his administration would also impose export controls “on any and all critical software.”
“It is impossible to believe that China would have taken such action, but they did, and the rest is history,” Trump wrote.
China announced this week that foreign entities must obtain a license to export any products containing more than 0.1 percent rare earth elements that are either sourced in China or manufactured using the country’s extraction process. China controls about 70 percent of the world’s minerals and rare earths.
Rare earths and important metals are used in many products, including automobiles, semiconductors, and electronics such as laptops.
In his post on Truth Social, Trump described China’s move as “completely unheard of in international trade, and a moral disgrace in dealing with other countries.”
Trump Earlier on Friday He threatened to take countermeasures in response to Beijing’s announcement, and indicated that he may no longer meet with Chinese President Xi Jinping during the upcoming summit in South Korea as previously planned.
The president’s announcement of the tariff increase came shortly after the stock market closed on Friday. But stocks did see sharp losses the day after Trump’s initial threat to impose new tariffs.
The Dow Jones Industrial Average lost 876 points during the day, closing with a loss of 1.9 percent. The S&P 500 fell 2.7 percent, and the Nasdaq Composite, which is dominated by technology stocks, fell 3.6 percent before the closing bell.
The president spoke warmly of Xi throughout his second term, even as the Trump administration slapped Beijing with tariffs over the flow of fentanyl into the United States and left other tariffs in place from Trump’s first term.
The tariffs imposed on China have particularly affected American farmers, as China has not purchased soybeans from American producers.
Updated at 5:12 PM EST
