Trump: US will impose 100% tariff on China starting Nov 1

Trump: US will impose 100% tariff on China starting Nov 1

President Donald Trump has announced plans to impose a 100% tariff on Chinese products starting November 1, in response to China's new export controls on rare earths. The move comes amidst heightened tensions between the two nations and follows Trump's previous threats to increase tariffs and cancel a scheduled meeting with Chinese President Xi Jinping. Trump's latest announcement was made on Truth Social, where he stated, "One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America." He also mentioned that this is part of a broader strategy to "financially counter" China's new export controls . China's Ministry of Commerce had earlier announced that foreign entities must now obtain a license to export products containing more than 0.1% of rare earth sourced from China or manufactured using Chinese extraction, refining, magnet-making, or recycling technology. These rules are set to take effect on December 1 . The new tariffs are expected to have a significant impact on the U.S. economy and global supply chains. China controls roughly 70% of global rare-earth production and 90% of processing capacity, making the export controls a strategic move to assert dominance in key industries such as electric vehicle batteries, semiconductors, defense systems, and renewable energy technologies . The announcement has already caused market volatility, with Bitcoin (BTC) dropping 3% and total liquidations reaching $807 million over the past 24 hours. The broader market also experienced a sell-off, with the S&P 500 and Nasdaq dropping by 2% and 2.7% respectively . Investors and financial professionals are closely monitoring the situation, as the tariffs could lead to increased costs for U.S. businesses and consumers. The potential impact on supply chains and the broader economy remains a key concern.