MercoPress. South Atlantic News Agency

Trump announces additional tariffs on Chinese products

Trump's latest move caused US stock markets to plummet

US President Donald Trump announced on Friday that he would be imposing 100% tariffs on China starting November 1 or sooner, accusing Beijing of a “hostile” trade stance related to rare earth mineral exports. The new surcharge will be piled on top of existing taxes (30%).

 Washington will also implement export controls on “critical software” bound for China following Beijing's decision to apply massive export controls on rare earth minerals starting December 1.

Trump accused China of trying to establish a monopoly and “hold the world 'captive'” with its restrictions, which affect the manufacturing of semiconductors, batteries, and other technologies globally.

The announcement caused US stock markets, including the Dow Jones, S&P 500, and Nasdaq, to plummet by over 3% due to investor concerns about the economic disruption. Conversely, shares of US rare earth mining companies saw a significant spike.

In this scenario, Trump stated he might cancel his scheduled meeting with Chinese President Xi Jinping in South Korea during the Asia-Pacific Economic Cooperation (APEC) summit, saying he no longer has a reason to meet.

“Some very strange things are happening in China!” the Republican leader posted on social media. “They are becoming very hostile and sending letters to countries throughout the world that they want to impose export controls on each and every element of production having to do with rare earths,” Trump further explained.

Analysts suggest that both countries are “reaching for their economic weapons at the same time” and this new disagreement marks the biggest escalation since the two powers had previously agreed to a tariff truce to negotiate.