Hot SourceUS President, Mr. Donald Trump, has reignited tensions with Beijing, announcing a fresh round of 100 per cent tariffs on Chinese goods in what marks a new phase of the long-running US-China trade war.
Trump’s weekend announcement is in addition to the 30 per cent tariffs already in effect. It will start on November 1 or sooner.
The president’s decision was in response to China’s decision to place export controls on its critical rare earths.
China holds the largest reserve of rare earths, which are critical to manufacturing electronics, clean energy technologies, and the defence industry.
The Chinese Ministry of Commerce on Thursday said the export controls would safeguard national security and interests.
Trump described the measure as “extraordinarily aggressive” and “extremely hostile”.
“It is absolutely unheard of in international trade, and a moral disgrace in dealing with other nations,” he added.
“Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other nations who were similarly threatened, starting November 1, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a tariff of 100 per cent on China, over and above any tariff that they are currently paying.”
Trump said the US will also impose export controls on all critical software.
Electronics are among the top goods China exports to the US.
As the trade war between the two countries escalated, Trump issued an exemption for electronics, making them subject to 20 per cent tariffs instead of the general 145 per cent tariffs imposed on Chinese goods.
Subsequently, China reduced its levies on American exports to 10 per cent from 125 per cent, while the US lowered its rates to 30 per cent from 145 per cent.
Trump and Chinese leader Xi Jinping were supposed to meet in South Korea later this month.
However, in a Truth Social post after his fresh tariff announcement, Trump said he no longer saw a reason to do so.
