Trump announces additional tariffs on Chinese products
US President Donald Trump declared on Friday that he would implement a staggering 100% tariff on goods imported from China starting November 1 or sooner, citing Beijing’s “hostile” trade tactics concerning rare earth mineral exports, reports 24brussels.
In addition to the new tariffs, which will add to existing taxes of 30%, Washington will enforce export controls on “critical software” destined for China. This decision follows China’s announcement of severe export restrictions on rare earth minerals, scheduled to take effect on December 1.
Trump has accused China of attempting to create a monopoly by “holding the world ‘captive'” through its restrictive practices, which are vital for the production of semiconductors, batteries, and various technologies worldwide.
The implications of this announcement were immediate, with US stock markets, including the Dow Jones, S&P 500, and Nasdaq, dropping by over 3% as investors expressed concerns regarding potential economic ramifications. Conversely, stock prices of US rare earth mining firms experienced a notable increase amid the turmoil.
In light of these developments, Trump mentioned the possibility of canceling his planned meeting with Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, stating he no longer saw a reason to engage.
“Some very strange things are happening in China!” Trump remarked 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,” he elaborated.
Analysts indicate that this scenario reflects both nations “reaching for their economic weapons simultaneously,” marking a significant escalation since the two countries had previously agreed to a tariff truce for negotiations.
