President Trump escalated tariff and trade tensions with China on Friday, announcing via a post on Truth Social that the US will impose an additional 100% tariff on Chinese goods starting November 1, 2025. This move comes in response to China’s “extraordinarily aggressive” stance on trade, specifically new export controls set to take effect next month, which trump claims impact more than just the US and represent a “moral disgrace.” He indicated the tariff implementation could be accelerated depending on China’s reaction and announced coinciding export controls targeting China’s access to “critical software.”
Earlier Friday,Trump had already threatened a “massive increase” in duties on Chinese goods and suggested canceling a planned meeting with Chinese leader Xi Jinping.He accused China of becoming “very hostile,” citing restrictions on rare earth mineral exports, new port fees on US ships, and an antitrust examination into Qualcomm. beijing has also halted US soybean purchases, disrupting plans for US farmers.
The announcement caused US stocks to decline on Friday. Currently, US tariffs on China, reaching nearly 145% in some instances, are paused untill November 10th as both countries pursued a larger trade deal. Chinese tariffs on US goods previously reached 125% before the pause.
Looking ahead, the US Supreme Court will hear a challenge to Trump’s broader “reciprocal” tariffs early next month. A ruling against these tariffs, aligning with previous lower-court decisions, could considerably impact Trump’s overall tariff strategy and the revenue generated from these duties.
Stocks have worst day since post-‘liberation Day’ woes
Tariff jitters returned to Wall Street in a big way on Friday.
The Dow (^DJI) fell almost 900 points. The S&P 500 (^GSPC) lost 2.7%, and the Nasdaq Composite (^IXIC) sank over 3.5% in their worst days since April. The moves came after President Trump renewed his tariff threats against China, specifically warning of a “massive increase” in duties.
The moves downward Friday cemented important weekly losses, and it wiped out stock gains in October so far. The major indexes haven’t had a down month since May.
you can catch up on the day’s action in our markets live blog.
President Trump also announced via Truth Social that, “Also on November 1st, we will impose Export Controls on any and all critical software.”
Trump threatens new Tariffs on chinese Goods,Stocks Fall
President Trump wrote in a Truth Social post that the Chinese goverment is seeking to tighten its control over rare earth minerals. Trump went on to threaten a “massive increase” in tariffs on Chinese goods.
Stocks Fall After Trump Tariff Threat
Stocks fell on Friday after President Trump posted on Truth Social that he is considering imposing a “massive increase” in tariffs on Chinese goods and announced that he would not meet with Chinese leader Xi Jinping at the APEC summit in South Korea in two weeks.
“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” Trump said after rebuking China for threatening rare earth export controls. “One of the Policies that we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America.”
Trump’s post sent Chinese tech stocks Alibaba (BABA), Tencent (TCHEY), and Baidu (BIDU) tumbling, while shares of rare earths companies MP Materials (MP) and USA Rare Earth (USAR) soared.