US President Donald Trump reignited the trade war with China by announcing a 100% tariff on Chinese goods. He also threatened to cancel his meeting with Chinese President Xi Jinping, planned for later this month at the APEC Summit in South Korea.
Trump said the new tariffs, along with restrictions on US exports of critical software, will start on November 1. He accused Beijing of taking “extraordinarily aggressive” steps by limiting exports of rare earth minerals, which are key for smartphones, electric cars, and defense technology.
Stock markets reacted sharply — the Nasdaq fell 3.6% and the S&P 500 dropped 2.7% after Trump’s announcement. He wrote on Truth Social that China was becoming “very hostile” and “holding the world captive” by controlling rare earth supplies.
Trump’s decision comes after months of uneasy relations between the two nations. Both sides had paused their tariff battle earlier this year, but tensions never fully cooled.
He also accused China of “lying in wait” and said other countries are frustrated by Beijing’s trade actions. The renewed tariff fight adds pressure to global markets and could derail plans for better US-China cooperation.
