Trump Says U.S. Will Hit China With 100% Additional Tariff Over Rare Earth Restrictions

President Trump said Friday that in response to China's announcement of strict new restrictions on rare earth minerals, he will impose an additional 100 percent tariff on Chinese imports and new export controls on critical software.

The measures will take effect Nov. 1, Trump said on Truth Social, potentially raising average U.S. tariffs on many Chinese goods above 150 percent. Trump also said he saw no reason to go ahead with his planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month.

“It has just been revealed that China has taken an extremely aggressive position on trade, sending a very hostile letter to the entire world saying that they are going to impose large-scale export controls on virtually every product they make, and some they don't even make, as of November 1, 2025,” Trump wrote.

Trump's tariff measures come a day after China's Ministry of Commerce announced new restrictions on exports of rare earth elements, lithium batteries and related technologies. The rules, which are said to take effect in early November, require foreign companies to obtain licenses to export products containing Chinese rare earth elements amounting to as little as 0.1 percent of the product's value, or goods made using Chinese rare earth processing technology.

China processes about 90 percent of the world's rare earths, minerals needed to make semiconductors, electric vehicles and military equipment. Its dominance in downstream processing gives Beijing significant leverage over global technology supply chains.

China's restrictions on rare earth elements have upended months of negotiations between Washington and Beijing. Earlier this year, the two countries agreed to a tariff truce that reduced U.S. tariffs on Chinese goods from a peak above 140 percent in April. According to the Peterson Institute for International Economics, average U.S. tariffs on China currently stand at 57.6 percent, while Chinese tariffs on American goods average 32.6 percent.

Trump said other countries have contacted him expressing anger at China's actions. “Our relationship with China has been very good over the past six months, which makes this trade move even more surprising,” he wrote.

This week, China also imposed new port charges on U.S. ships and launched an antitrust investigation into U.S. chipmaker Qualcomm.

The dispute over rare earths marks a repeat of tensions that flared earlier this year. In April, China tightened controls on mineral exports, prompting warnings of supply chain disruptions in the auto and defense industries. Both sides eventually eased most restrictions after a series of meetings in Britain and Europe.

China's latest restrictions could prove more damaging. Many global tech companies will find it difficult to demonstrate that their products will fall below the 0.1 percent threshold, potentially requiring them to obtain Chinese government approval to export.

Canceling the APEC meeting would be a setback for Xi Jinping, who has sought continued engagement with Trump to manage the bilateral relationship.

Wall Street Journal reported this week that China's decision to tighten export controls was driven by Chinese officials' belief that they had gained leverage over the US economy and President Trump ahead of the APEC meeting. Officials view the recent U.S. response to China's trade threats as “weak.” Wall Street Journal reported. Chinese officials have sought to pressure the United States to lift tariffs and export controls on technologies, especially those related to artificial intelligence.

One analyst called China's restrictions “the economic equivalent of nuclear war—an attempt to destroy the American artificial intelligence industry.” Wall Street Journal reported.

The federal government shutdown over budget disputes may also have emboldened the Chinese regime, which appears to have taken it as a sign of government disorder.

Trump's reaction to export controls suggests the Chinese miscalculated Trump's desire to get a deal done.

Trump said the US would impose export controls on “any critical software” starting November 1, although he did not specify which products would be affected.

The US retains significant leverage in advanced semiconductor technologies and manufacturing equipment. U.S. companies and their allies control more than 90 percent of global semiconductor equipment production, and China remains heavily dependent on foreign sources for advanced chips needed for artificial intelligence and military applications.
China's moves are emboldening trade hawks in the Trump administration, strengthening their arguments that the United States may eventually have to decouple its economy from China's.

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