James ObasiTrump Slaps 100% Tariff on China, Threatens to Scrap Xi Meeting Amid Rare Earths Dispute
President Donald Trump reignited U.S.-China trade tensions on Friday by announcing a sweeping 100% tariff on Chinese goods, effective November 1. The move comes in response to China’s export restrictions on rare earth minerals, which are vital for tech and defense industries. Trump also threatened to cancel his upcoming meeting with Chinese President Xi Jinping at the APEC summit, citing Beijing’s “hostile” behavior.
The announcement sent U.S. markets tumbling, with the Nasdaq falling 3.6% and the S&P 500 dropping 2.7%.
Trump accused China of trying to hold the world “captive” through control of rare earths and claimed the country was “lying in wait” despite recent diplomatic progress. Current U.S. tariffs on Chinese imports stand at 30%, while China imposes 10% tariffs in retaliation.
The surprise escalation adds fresh uncertainty to U.S.-China relations, just weeks after Trump had emphasized the importance of face-to-face diplomacy with Xi.
