Trump Imposes 100% Tariffs on Chinese Goods, Causing $3 Trillion in Global Damage

U.S. President Donald Trump made a surprising announcement today, imposing an additional 100% tariff on all imported goods from China, effective November 1, or potentially even earlier, depending on China’s future actions. This decision comes as a direct response to recent measures by Chinese authorities to tighten export controls on rare earth minerals, which are essential for producing high-tech products, including semiconductors and military equipment.

Trump’s announcement triggered immediate turbulence in global financial markets, with the S&P 500 index plummeting more than two percent in a single day—its sharpest decline since April.

In his statement, Trump linked the new tariffs to China’s “extremely aggressive stance” on trade, asserting that the country has sent an “extremely hostile message” to the world by imposing large-scale export restrictions on nearly all its products, including those not manufactured in China.

This announcement follows Trump’s earlier threats of “massive tariff increases,” which had already contributed to a decline in the Dow Jones by 385 points (0.8%) and a drop in the Nasdaq by 1.75%. The recent Chinese export restrictions on rare earth materials, announced just the day before, have significant implications, as 100% of these materials are refined in China, and approximately 90% of magnets are produced there. Beijing justified these restrictions by citing national interests, while Washington views them as an “economic declaration of war,” according to House China Chairman John Mullinaar.

Earlier in April, Trump had already imposed an additional 84% tariff, bringing the total tariff rate on certain goods to 104%. This escalation has led to a slowdown in trade between the two countries and prompted retaliatory measures from China, including 34% tariffs on American goods.