Policy Updates: Trump threatens China with 100% tariffs, escalating trade war

Trump threatens China with 100% tariffs, escalating trade war (Reuters): President Trump said the U.S. will impose 100% tariffs on all Chinese imports beginning November 1 and tighten export controls on advanced software. The move follows China’s new restrictions on exporting rare earth minerals—materials essential for electronics, machinery, and renewable energy systems. Trump described Beijing’s action as a “hostile order” and said there was “no reason” to meet with President Xi Jinping later this month.

Financial markets slid sharply on the news, with major U.S. indexes down more than 2%. Analysts warn the tariff hike could raise costs for farm machinery, fertilizer components, and precision ag technology, while China could retaliate by curbing U.S. agricultural imports such as soybeans and pork. Farmers and equipment manufacturers now face renewed trade uncertainty after several years of relative stability between the two countries.