U.S. President Donald Trump said on the 10th (local time) that, in response to China's rare-earth export controls, he would impose an additional 100% tariff on China starting on the 1st of next month. This raised concerns that U.S.-China trade tensions could reignite. Earlier in Apr., the United States and China waged a "tariff war," imposing ultra-high tariffs of more than 100% on each other, but the conflict eased as they continued high-level talks afterward.
On the same day, President Trump announced the tariff plan on Truth Social, saying, "I just learned that China has taken an extremely aggressive stance on trade." The current average U.S. tariff on Chinese goods is about 55%. With an additional 100% tariff, Chinese products entering the United States would face an average tariff of about 155%.
President Trump said, "China sent a very hostile letter to the world stating that beginning Nov. 1, 2025, it would implement sweeping export controls on virtually everything it produces and even on some items it does not make." This is interpreted as referring to China's rare-earth export control measures.
Regarding China's move, President Trump criticized it, saying, "This affects all countries without exception and is clearly something they have planned for years," and "Nothing like this has ever been heard of in international trade, and it is a moral disgrace in transactions with other countries."
He went on, "Based on the fact that China has taken this unprecedented action, and representing only the United States—not on behalf of other countries similarly threatened—starting Nov. 1, 2025 (or sooner if China takes additional actions or makes changes), the United States will impose an additional 100% tariff on China on top of what they are currently paying." He added, "On Nov. 1, we will also implement export controls on all critical software (to China)."
Earlier the same day, President Trump said on Truth Social, "China is sending a letter to countries, notifying them that it will impose export controls on all elements related to 'rare-earth' production," criticizing it as "holding the world captive." He added, "One of the policies we are reviewing at this moment is a massive tariff increase on Chinese goods entering the United States."
About six hours later, President Trump announced the "100% additional tariff" plan against China. In the process, he said, "I was scheduled to meet Xi Jinping (China's president) at the APEC (Asia-Pacific Economic Cooperation) meeting in Korea in two weeks, but now it seems there is no reason to do so." Depending on how China responds, not only could the leaders' meeting on the sidelines of APEC fall through, but bilateral relations could also enter a sharply confrontational phase.
Meanwhile, on fears of a renewed "tariff war" between the United States and China, New York stocks plunged across the board. The Dow Jones Industrial Average fell 878.82 points (-1.90%) from the previous session, while the Standard & Poor's (S&P) 500 dropped 182.60 points (-2.71%). The tech-heavy Nasdaq composite fell 820.20 points (-3.56%) from the previous session.