/ AP Agency
The President of the United States, Donald Trump, announced that he will apply an additional 100% tariff on Chinese imports starting November 1 or earlier, which could raise rates to levels close to those that in April fueled fears of a global recession.
The President stated that he is imposing these new tariffs due to the export controls imposed by China on rare earths. The new tariffs are based on an earlier post on Truth Social, in which Trump stated that there “doesn’t seem to be a reason” to meet with Chinese leader Xi Jinping, in the context of his upcoming trip to South Korea.
Trump said that “starting November 1, 2025 (or earlier, depending on any additional action or change China takes), the United States of America will impose a 100% tariff on China, in addition to any tariffs they are currently paying.”
The announcement came after the financial markets closed on Friday, which could cause deep turbulence in the world economy. Not only could the global trade war instigated by the American Head of State be reignited, but the accumulation of import taxes, in addition to the 30% already applied to Chinese products, could, according to previous statements from the administration, cause a breakdown in trade between the United States and China, which could lead to a drop in global growth.
While Trump’s words were forceful, he is also famous for retracting his threats. Some investors began participating in what the Financial Times called the “Taco” trade, which stands for “Trump Always Chickens Out”.
The President also said that the United States Government would respond to China by imposing its own export controls “on any critical software” from American companies.
The United States and China have been competing to gain an advantage in trade negotiations, after the import taxes announced earlier this year triggered a trade war between the world’s two largest economies.
Both nations agreed to gradually reduce tariffs following negotiations in Switzerland and the United Kingdom; however, tensions persist, as the Asian giant has continued to restrict US access to rare earths, which are difficult to extract and necessary for a wide range of American technologies.
