US President Donald Trump has threatened to impose 100% tariffs on all Chinese imports starting November 1, marking the most dramatic escalation in US–China trade tensions since his return to office.

In a late-night Truth Social post, Trump accused Beijing of adopting an “extraordinarily aggressive position” by imposing sweeping export controls on rare earth materials and other critical goods. He said the US response would be “swift and decisive,” adding that the tariffs could take effect “sooner if necessary.”

The move would effectively double the current duties on Chinese products entering the US, targeting sectors from electronics to consumer goods. Trump also announced plans to impose new export restrictions on “any and all critical software” bound for China, signaling an expansion of the trade dispute into the technology sphere.

Retaliation to Chinese export controls

Beijing recently expanded its export controls over rare earth elements, materials vital for defense, renewable energy, and high-tech manufacturing, citing the need to “protect national security and ensure responsible use of strategic resources.” Washington has interpreted reciprocal Chinese measures as a direct economic threat, warning that it jeopardizes US supply chains and manufacturing resilience.

Trump claimed China’s restrictions were part of a long-term plan “to hold the world captive” through control of essential materials.

“It is absolutely unheard of in international trade, and a moral disgrace,” he said, vowing that his administration “will not allow China to dictate global commerce.”

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Global markets and economic fallout

The announcement triggered immediate turmoil across global markets. Wall Street indices fell sharply on Friday, with the S&P 500 down nearly 3% and the Nasdaq retreating more than 3.5%. Shares of major tech firms, including Nvidia, suffered heavy losses amid fears of further disruptions in chip manufacturing and electronics supply chains.

Economists warned that doubling tariffs on Chinese imports could fuel a new wave of inflation in the United States, increase consumer prices, and slow global trade recovery.

A planned meeting between Chinese President Xi Jinping and Trump in South Korea later this month now appears uncertain. Trump hinted that the talks might be canceled, saying “there seems to be no reason” to meet with Xi under the current circumstances.

Relations between Washington and Beijing had shown signs of improvement earlier this year, when both sides agreed to reduce tariffs following months of negotiations. However, Beijing’s recent export curbs, which come as direct "defensive response" against the US' expanded export bans on technology, and Trump’s renewed tariff threats have reignited fears of a prolonged trade confrontation.

Read more: China's rare earth grip forces US concession: FP

Strategic, political dimensions

Trump’s aggressive tariff strategy is as much political as it is economic, aimed at reinforcing his image as a defender of US industries ahead of key diplomatic engagements. The White House maintains that the tariffs are essential to counter what it describes as “China’s economic coercion” and safeguard US manufacturing.

Trump has repeatedly framed his trade policy as a zero-sum struggle for global dominance.

“The US has monopoly positions much stronger and more far-reaching than China’s,” he wrote on Truth Social, suggesting that Washington holds superior leverage in strategic industries.

While Beijing has not yet issued a formal response, Chinese state media denounced the US move as “protectionist escalation” and warned that China “will not sit idly by.”

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