Why Trump Suddenly Slapped Additional 100% Tariff On China

US President Donald Trump has announced a major escalation in his trade war with China: a 100% tariff on all Chinese goods starting November 1. The move follows Beijing's sweeping new export controls on rare-earth minerals. These are critical materials used in semiconductors, fighter jets, and other advanced technology.

In his Truth Social post, Trump accused China of taking an "extraordinarily aggressive" stance and called its actions "a moral disgrace in international trade."

He warned that the tariffs could take effect sooner if Beijing takes additional steps.

US officials say China's export controls were a deliberate move to gain leverage ahead of the APEC summit in South Korea, where Trump and Chinese President Xi Jinping had been expected to meet. That meeting is now in doubt. Trump said he sees no reason to meet Xi, though he hasn't officially cancelled.

So why this sudden tariff surge?

Partly, it's retaliation. China's rare-earth restrictions directly hit America's industrial and defence base. The US has tried to build domestic capacity by investing $400 million in MP Materials—the only US rare-earth producer—but remains heavily dependent on Chinese supply chains.

It's also political. Trump has long branded himself as tough on trade. With markets uneasy, he's signalling to his base that America won't be bullied.

And it's tactical. Trump uses tariffs as leverage, announcing sweeping measures to pressure rivals into negotiation. This could be less about collecting tariffs and more about forcing China back to the table on Washington's terms.

There's also optics. The announcement came the same day Trump touted a Middle East peace breakthrough. By pairing diplomacy with economic toughness, he projects global strength on multiple fronts.

Markets, however, reacted instantly. The Dow fell nearly 900 points, the S&P 500 dropped 2.7 percent, and the Nasdaq slid 3.5 percent, led by major tech and retail stocks. Analysts warn a renewed trade war could jolt global supply chains just ahead of the holiday season.

For now, Washington and Beijing appear headed toward another high-stakes standoff: one that mixes politics, power, and economic pressure and could reshape global trade in the weeks to come.