President Trump announced an unexpected and aggressive move targeting China, imposing 100% tariffs on all Chinese goods effective November 1. The decision came after allegations that China had issued a “hostile letter” threatening to enforce sweeping export controls on nearly every product it produces, including items not manufactured by them.
Trump stated that China’s actions, described as an “unheard of” and “moral disgrace” in international trade, necessitated the tariff increase. He emphasized that the U.S. would implement the 100% tariffs “over and above any Tariff they are currently paying,” with the measure set to take effect on November 1 or sooner if China escalates its actions.
The president also announced export controls on critical software, citing concerns over national security. Trump accused China of orchestrating a long-term strategy to dominate global trade, claiming, “It is absolutely unheard of in International Trade.”
The move triggered immediate market reactions, with the crypto market experiencing sharp declines. Bitcoin fell to $104,000 before recovering slightly to around $112,500.
Trump’s announcement followed earlier criticism of Chinese leader Xi Jinping over export control measures targeting rare earths, a sector vital to U.S. industries. The president warned of economic retaliation, stating, “For every Element that they have been able to monopolize, we have two.”
China’s expanded restrictions on rare earth exports, which include controls on production technologies and military applications, were seen as an effort to strengthen its leverage in trade negotiations. The actions coincided with upcoming diplomatic discussions between Trump and Xi during the APEC summit.