On October 10, 2025, US President Donald Trump declared an additional 100% tariff on Chinese imports along with export restrictions on critical software, effective November 1, 2025. The move follows Beijing’s plan to impose sweeping export controls, sparking renewed fears of a global trade disruption.
Trump stated that China had taken an “extraordinarily aggressive” stance on trade and accused it of threatening global supply stability. In response, the US will double its tariffs, raising total import duties on Chinese goods to about 130%, and apply export controls on all essential software. The decision signals a major escalation in the ongoing trade confrontation between the world’s 2 largest economies.
Following the announcement, global markets tumbled. The S&P 500 Index fell 2.7%, the Nasdaq 100 dropped 3.5%, and the Dow Jones Industrial Average declined 0.52%. Soybean futures also slipped nearly 2% as concerns mounted that Beijing could again restrict US agricultural imports. The sharp declines highlight the fragility of investor confidence amid growing geopolitical risks.
In swift retaliation, China’s Ministry of Commerce announced new export controls on rare earth materials and technologies vital to electronics and defence manufacturing. Exporters will now require special licences to ship rare earth products. Additionally, Beijing imposed port fees on US ships, initiated an anti-trust probe into Qualcomm Inc, and signalled further actions targeting American firms in China.
Read More: USA to Impose 25% Tariffs on Imported Medium and Heavy-Duty Trucks from November 1!
Despite the harsh tone, Trump left room for negotiation, suggesting the tariffs might be reconsidered if Beijing reverses its rare earth export curbs. The timing is crucial, as both leaders are scheduled to meet at the APEC Summit in South Korea later this month. However, Trump remarked that the meeting “may not be necessary” unless China changes course.
Trump’s 100% tariff announcement marks a decisive step in escalating the US–China trade conflict, reigniting fears of economic slowdown and supply chain disruptions. With rare earths and critical technologies at the centre of the dispute, the coming weeks before the APEC Summit will be crucial in determining whether dialogue or confrontation defines the next phase of global trade relations.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Oct 11, 2025, 2:15 PM IST
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