Trump Reignites Trade War With China
US President Donald Trump has reignited the trade war with China, abruptly ending a fragile truce between the world’s two largest economies, Reuters reports. The move came after Beijing expanded export controls on rare earth elements crucial to global technology production.
White House announced a sweeping set of trade measures on Friday, including a 100% tariff on Chinese exports bound for the U.S. and new restrictions on «all critical software» exports from America. The measures will take effect on November 1, just days before existing tariff relief expires.
Speaking to reporters, Trump hinted that his long-anticipated meeting with Chinese President Xi Jinping, scheduled to take place in South Korea later this month, was now in doubt.
«I haven’t cancelled,» he said, «but I would assume we might have it.» Beijing has not confirmed the summit.
Beijing’s Move Sparks Swift US Retaliation
Trump’s decision follows China’s announcement of stricter export rules for rare earth elements — a market it dominates, producing over 90% of the world’s supply. The materials are essential for electric vehicles, aircraft engines and military technologies.
Calling Beijing’s actions «a hostile order,» Trump said he had been «forced to financially counter their move.» He added that for every rare element China monopolises, «we have two.»
Trade experts warned that Washington’s export restrictions on software could severely hit Chinese industries, particularly cloud computing and artificial intelligence. Trump also threatened to extend controls to aircraft and components, while officials reportedly explored further measures.
The White House, the US Trade Representative and the Treasury Department all declined to comment on possible next steps.
Markets React as Tensions Surge
The latest escalation sent global financial markets into a tailspin. The S&P 500 fell over 2%, marking its sharpest one-day drop since April. Investors fled to safe assets such as gold and US Treasuries, while the dollar weakened.
Technology shares were among the hardest hit, with major US firms exposed to China suffering losses in after-hours trading.
Craig Singleton of the Foundation for Defense of Democracies said Trump’s move «could mark the beginning of the end of the tariff truce,» describing China’s export controls as «a betrayal» that overplayed Beijing’s hand.
Rising Stakes Ahead of Possible Trump–Xi Summit
Economic friction between Washington and Beijing has been intensifying in recent days. The Trump administration has proposed banning Chinese airlines from flying over Russia on US-linked routes, while the Federal Communications Commission removed millions of Chinese electronics from American online marketplaces.
Analysts say the stakes have now risen dramatically for the planned Trump–Xi meeting during the Asia-Pacific Economic Cooperation (APEC) forum on October 31 in South Korea.
«Both sides are ramping up pressure ahead of APEC,» said Scott Kennedy of the Center for Strategic and International Studies. «Either they’re pushing for last-minute concessions, or they’ve already decided a deal is impossible and are positioning for the next round.»
Kursiv also reports that the United States Department of Commerce has announced provisional anti-dumping duties exceeding 91% on Italian pasta starting in January 2026, adding to the 15% tariff already in place.
