Trump Unleashes Economic Blow: 100% Tariff on China Imposed Next Month

Trump Threatens to Impose Additional 100% Tariff on China In a move that sent shockwaves through global financial markets, President Donald Trump announced plans to impose an additional 100% tariff on imports from China, effective next month. The decision comes amid escalating tensions between the two nations over trade and export controls. According to a statement posted on social media, Trump accused China of "becoming very hostile" and attempting to hold the world "captive" through its tightened rules for exports of rare earths. He also threatened to pull out of a meeting with Chinese President Xi Jinping, although later clarified that he had not cancelled the meeting. The move has sparked concerns among business leaders and economists, who warn of potential economic repercussions. "This is a very aggressive move by the administration," said Robert Wolf, CEO of UBS Americas. "It's going to have far-reaching consequences for American businesses and consumers." China dominates production of rare earths and other key materials essential for industries such as automotive, aerospace, and electronics. The country's tightened export controls have already led to concerns about supply chain disruptions. The last time Beijing imposed similar restrictions was in response to Trump's earlier decision to raise tariffs on Chinese goods. "This is a classic case of tit-for-tat," said trade expert Jeffrey Schott. "Both sides are trying to gain leverage, but it's unclear who will blink first." Financial markets reacted swiftly to the news, with the S&P 500 closing down 2.7% – its steepest fall since April. The move has also sparked concerns about potential job losses and economic instability. As tensions between the two nations continue to escalate, experts warn of a potential trade war that could have far-reaching consequences for global economies. "This is not just about tariffs; it's about the future of international trade," said economist Mark Zandi. "We need to find a way to resolve these differences peacefully." The White House has yet to provide further details on the planned tariff increase or its potential impact on American businesses and consumers. Background Tensions between the US and China have been escalating over trade and export controls for months. In July, Trump raised tariffs on Chinese goods in response to Beijing's refusal to agree to a trade deal. China has since imposed retaliatory measures, including tightening export controls on rare earths. Additional Perspectives Business leaders and economists are urging calm, but also cautioning against underestimating the potential impact of the planned tariff increase. "We need to be prepared for the worst-case scenario," said Wolf. "This is not a game; it's about people's livelihoods." As the situation continues to unfold, one thing is clear: the world is watching with bated breath as two of its largest economies engage in a high-stakes game of trade and diplomacy. Current Status The planned tariff increase is set to take effect next month. The White House has yet to provide further details on the potential impact or any measures that may be taken to mitigate economic consequences. Next Developments As tensions between the US and China continue to escalate, experts warn of a potential trade war that could have far-reaching consequences for global economies. The situation remains fluid, with both sides engaging in a high-stakes game of diplomacy and trade. *Reporting by Bbc.*