President Donald Trump has announced significant new trade measures against China, including a substantial 100% tariff on imports and the imposition of export controls on critical software. These actions, slated to take effect in November 2025 or sooner if China escalates its trade policies, signal a renewed hardening of the U.S. stance in the ongoing trade friction between the two economic superpowers.
The President’s pronouncements, made via his Truth Social platform, stem from allegations that China has adopted an “extremely aggressive” posture in international trade. Trump cited a hostile letter purportedly sent by China to global entities, detailing plans for widespread export controls on a vast array of products, effective November 1, 2025. He characterized these alleged plans as unprecedented and a departure from established international trade norms.
This latest development follows an earlier warning from Trump regarding potential new tariffs, specifically linked to concerns over China’s control of rare earth minerals. These minerals are indispensable components for a wide range of advanced technologies, from semiconductors to consumer electronics. China’s dominant position in supplying over 90% of the world’s processed rare earths and related magnets, as reported by Reuters, makes such controls a significant strategic lever.
The market reacted swiftly to the escalating trade rhetoric. On Friday, the S&P 500 experienced a notable decline, falling over 2% in what was its steepest single-day decrease since April, according to Reuters. This market volatility underscores the global economic sensitivity to U.S.-China trade relations. Notably, China had already expanded its export controls on rare earth elements the preceding Thursday, adding another layer of complexity to the trade landscape.
David Thompson earned his MBA from the Wharton School and spent five years managing multi-million-dollar portfolios at a leading asset management firm. He now applies that hands-on investment expertise to his writing, offering practical strategies on portfolio diversification, risk management, and long-term wealth building.