Tensions Escalate Between Washington and Beijing
US President Donald Trump has reignited his long-standing trade war with China, threatening to impose an additional 100% tariff on all Chinese imports starting 1 November — or even sooner. The sharp move follows Beijing’s decision to tighten export controls on rare earth elements, a vital resource in modern technology.
In a fiery post on Truth Social, Trump criticised China’s actions as “extraordinarily aggressive” and warned of immediate retaliatory measures, including export bans on critical US software.
“It is impossible to believe that China would have taken such an action, but they have, and the rest is history,” Trump wrote.
Market Reaction: Global Stocks Fall
The renewed trade tensions rattled global markets:
Nasdaq fell by 3.6%
S&P 500 dropped by 2.7%
Investors expressed growing concerns over a potential return to large-scale trade disruptions between the two world powers
The economic shock comes as both nations continue to grapple with ongoing disputes over technology, intellectual property, and energy resources.
China’s Rare Earth Dominance Raises Concerns
China’s latest move involves restricting exports of rare earth minerals, key materials used in:
Smartphones and electric vehicles
Military equipment
Renewable energy technologies
Beijing’s dominance in the rare earth market — producing nearly 70% of global supply — has given it enormous leverage in trade disputes. Trump described China’s actions as an attempt to “hold the world captive,” calling the move “very hostile.”
“There is no way that China should be allowed to hold the world captive,” he posted online.
Uncertain Future for Trump–Xi Meeting
President Trump also hinted at the possible cancellation of his planned meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) Summit in South Korea later this month.
Originally expected to be the first face-to-face meeting between the two leaders since Trump’s return to power in January, the summit now appears uncertain.
“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 wrote.
However, speaking later to reporters in the Oval Office, he struck a slightly softer tone:
“I haven’t cancelled, but I don’t know that we’re going to have it. I’ll be there regardless, so I would assume we might have it.”
Trade War Flames Reignited
This latest confrontation follows a fragile truce reached earlier this year, when Washington and Beijing agreed to pause their tit-for-tat tariffs that had threatened to freeze global trade.
Currently:
US tariffs on Chinese imports stand at 30%
China’s retaliatory tariffs are at 10%
Trump’s proposed 100% tariff would dramatically escalate the conflict, affecting a vast range of goods — from electronics to everyday consumer items.
Political and Economic Motives Behind the Move
Trump’s renewed trade offensive also has a domestic angle. He recently pledged to protect American farmers, a key voter base that suffered during previous trade wars. The president has repeatedly criticised China for failing to increase US soybean purchases and for what he calls “unfair trade practices.”
Meanwhile, Trump accused Beijing of being “lying in wait” after what he described as six months of relatively positive relations, which included negotiations over TikTok’s US operations and technology control.
“Some very strange things are happening in China! They are becoming very hostile,” Trump remarked.
China Responds with Port Fees and Technology Restrictions
Beijing fired back by announcing “special port fees” on ships built or operated by American companies, following the US move to charge Chinese-linked vessels earlier this year.
Additionally, the Federal Communications Commission (FCC) revealed that millions of listings for banned Chinese products had been removed from major online marketplaces.
“The Communist Party of China is engaged in a multi-prong effort to insert insecure devices into Americans’ homes and businesses,” said Brendan Carr, head of the FCC.
Global Impact: The Stakes Are High
The fallout from this escalating dispute could have far-reaching consequences:
Higher consumer prices in both countries
Supply chain disruptions in critical industries
Increased political tension across Asia-Pacific and Europe
With both nations holding firm, analysts fear a return to full-scale trade warfare, potentially disrupting global markets and further straining diplomatic ties.
Looking Ahead
While Trump insists he is ready to “stand firm” against China’s “hostile trade tactics,” economists warn that doubling tariffs could hurt American businesses and consumers just as much as Beijing.
As the APEC Summit approaches, the world’s eyes are once again on the uneasy relationship between Washington and Beijing — a rivalry that continues to shape global economics and politics.
Sources:
Truth Social statements by President Donald Trump
US Federal Communications Commission (FCC) reports
Reuters, Bloomberg, and The Associated Press market data
Statements from China’s Ministry of Commerce
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