Trump threatens to impose additional 100% tariff on China:Likely take effect from November 1; US President says, ‘No reason to meet Xi Jinping now’

US President Donald Donald Trump announced on Friday that a 100% tariff will be imposed on all goods imported from China. He said this tax will take effect from November 1 and will be in addition to the existing 30% tariff. Trump’s announcement came in response to new restrictions imposed by China on the export of rare earth minerals. Trump wrote on the social media platform Truth Social, “This will create difficulties for almost every country in the world.” He also mentioned plans to impose export controls on software. In fact, on October 9, China tightened its export controls on rare earth minerals. Under these rules, foreign companies using Chinese minerals or technology will need to obtain a license. China also stated that it would not issue such licenses to companies linked to any foreign military. President Trump’s post on social media Truth Trump says there is no reason to meet Xi Jinping China has added holmium, erbium, thulium, europium, and ytterbium to its existing list of restricted minerals. Following China’s decision, an export licence will be required for mining, smelting, and technologies related to magnet production of these elements. After China’s announcement, President Trump said that many countries have contacted the US, expressing strong dissatisfaction with China’s major trade opposition. Therefore, at present, there seems to be no reason to meet Xi Jinping at APEC. However, it is still unclear how Trump will act on his threats and how China will respond. During discussions with the media, Trump stated that he has not cancelled his meeting yet. Impact of President Trump’s Announcement On Relations with China… This announcement made after market closure on Friday could cause turmoil in the global economy. This will not only reignite Trump’s global trade war, but imposing import tax on top of the already existing 30% tax on Chinese goods could create a rift in trade between the two countries. The tariff trade war between America and China began when Trump imposed a 145% tariff on Chinese goods, in response to which China imposed a 125% import tax on American products. These taxes were so high that trade between the two countries was effectively blocked. After negotiations, America reduced the tariff to 30% and China reduced it to 10% to enable further talks. With Trump’s threat of new import taxes, the relief from these lower rates may now end. This will not only increase doubts about whether Trump and Xi Jinping will meet or not, but it will also be difficult to determine how disputes between the two countries get resolved. On the American stock market… Due to growing tensions between the world’s 2 largest economies, there was turmoil in the American stock market Wall Street. Nearly six out of every seven stocks in the SP 500 fell. From big tech companies like NVIDIA and Apple to small companies trying to recover from tariff and trade uncertainties, almost everything weakened. By market close, the SP 500 index fell 2.7%. The Dow Jones Industrial Average dropped 878 points/1.9%. The Nasdaq Composite Index closed down 3.6%. Timeline of Trump’s Tariff Game March 5, 2025: President Donald Trump announced tariffs on countries worldwide in a joint session of US Congress. He said that our economy is continuously running in deficit. To prevent this loss, we will impose tariffs on all countries that put tariffs on our goods. April 2, 2025: Trump announced tariffs on 69 countries including India. This was supposed to take effect from April 9, but Trump postponed it then. The US President said that they are giving 90 days to countries worldwide to make a deal with America. July 31, 2025: The deadline for agreement expired. On this day, Trump imposed tariffs on more than 100 countries. Countries that made a deal with America faced 10 to 20% tariffs, and those who didn’t faced 25 to 50% tariffs.