By Manisha Sahu, America News World
October 11, 2025
In a dramatic escalation of the ongoing US–China trade conflict, former U.S. President Donald Trump announced on October 10 that the United States will impose a 100 percent tariff on Chinese imports beginning November 1, 2025, and introduce sweeping export controls on critical software. The move represents one of the most aggressive shifts in U.S. trade policy toward China in recent years, and carries serious implications for global tech, manufacturing, and supply chains.
Why the Sudden Re-escalation?
Trump’s announcement came in response to China’s announcement of new export restrictions on rare-earth minerals and related technologies—materials crucial for semiconductors, electronics, defense systems, and advanced manufacturing.
In a post on his platform Truth Social, Trump accused Beijing of adopting a “hostile” posture and asserted that the U.S. would respond “firmly.” “Starting November 1st, 2025 … the United States of America will impose a Tariff of 100 % on China, over and above any Tariff that they are currently paying,” he wrote, adding that export controls would apply to “any and all critical software.”
Trump also suggested he may cancel a previously planned meeting with President Xi Jinping at the upcoming APEC summit, saying there was “no reason” to meet under the current tensions.
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Market Shock and Economic Fallout
The announcement rattled financial markets immediately. The S&P 500 dropped more than 2 percent—its biggest single-day loss since April—and the Nasdaq fell nearly 3.6 percent. Tech stocks, especially those tied to China or reliant on chip imports, were hit hardest.
Analysts warned that such broad tariffs and software export curbs could lead to supply chain disruptions, inflationary pressures, and slowed growth. As one market strategist put it, “Downside risks to growth and upside risks to inflation are now higher than they were just 12 hours ago.”
Furthermore, U.S. exporters may suffer blowback—China has already threatened retaliatory port fees on U.S.-owned vessels starting October 14.
China’s Response and Retaliation Strategy
Beijing has not remained silent. In recent days, China added five rare-earth elements and dozens of processing technologies to its export control list, citing national security. The restrictions require government approval for exports of mining, processing, recycling, and magnet-related technologies.
China also plans to charge port fees on U.S. vessels docking in Chinese ports—400 yuan per net ton per voyage initially, rising each year until 2028. This is viewed as a retaliatory move in response to U.S. threats of tariffs on Chinese shipping.
Despite the bellicose tone, observers caution both sides may still use the upcoming APEC summit as a negotiated pressure point.
Strategic Risks & Global Implications
1. Supply Chain Shock: The U.S. heavily depends on China for rare earths, semiconductors, and component manufacturing. Sudden blockage or redirection could force costly reconfiguration across industries.
2. Technology Cold War: Imposing software export controls marks a shift from tariffs toward tech decoupling. China may retaliate with its own restrictions on critical tech components.
3. Global Spillover: American and Chinese trading partners in Asia, Europe, and Southeast Asia may be forced to pick sides or seek alternative supply chains.
4. Diplomatic Fallout: This escalation threatens renewed mistrust in multilateral institutions like the WTO and could provoke global criticism over unilateralism.
What Comes Next?
– Implementation on November 1: The 100 percent tariff and software export controls are slated to take effect then—unless diplomatic shifts intervene.
– Retaliatory Measures: Beijing may push further countermeasures—higher tariffs, tech bans, or expanded export curbs.
– Negotiation or Brinkmanship: Some analysts believe the dramatic move is part of a strategy to force concessions before APEC or subsequent summits.
– Wider Economic Effects: Multinational corporations with China exposure may re-evaluate manufacturing and trade strategies; global inflation and growth expectations may shift.
This development marks a turning point in the US-China trade war, pivoting from tariff skirmishes to tech confrontation. As both sides dig in, global observers will be watching closely for the next move in this high-stakes economic showdown.