Trump Escalates Trade War: 100% Tariffs on China, Software Export Ban, Rare Earths at Center Stage

In a filmic amplification of trade tensions, President Donald Trump announced a sweeping set of measures on Chinese imports and technology. Starting from November 1, the United States will impose an extra 100% tariff on a wide range of Chinese products, taking overall import duty to 130%. This action comes in response to China's aggressive strategy in trade, including new export restrictions on rare earth minerals and strategic technologies.

Trump also announced the plans to impose export controls on "any and all critical software," an extended crackdown on Chinese technology flows to the U.S. The measures follow China's statement that foreign companies need to seek special licenses to sell products containing even tiny quantities of Chinese rare earths.

The timing of the events makes a planned summit between Trump and Chinese President Xi Jinping later this month uncertain. Trump suggested that the summit could still occur, but he emphasized the tariff hike was aimed at squeezing Beijing into reconsidering its curbs.

Markets reacted viciously to the news. U.S. stocks experienced their worst single-day decline in six months, with the S&P 500 down 2.7% and the Nasdaq off 3.5%. Soybean futures plunged as investors fretted over China's continued refusal to purchase American farm products.

The trade dispute has reignited fears of a global economic shock, and both nations have been competing for an upper hand. China has charged American ships port taxes and launched an antitrust probe into a leading U.S. tech firm. The U.S. Trade Representative, meanwhile, proposed as high as 150% tariffs on Chinese-made cargo loading equipment.

With the November deadline fast approaching, global companies are bracing for the worst, traversing a perilous landscape characterized by economic protectionism and geopolitical posturing.