US President Donald Trump has threatened to impose additional tariffs of up to 100% on Chinese goods starting next month, accusing Beijing of taking “very hostile” actions by restricting exports of rare earth elements critical to American industries.
The announcement sent Wall Street sharply lower, as fears of a renewed trade war between the world’s two largest economies resurfaced.
Relations between Washington and Beijing had shown signs of improvement over the summer, with Trump agreeing to significantly reduce the earlier tariffs following rounds of negotiations.
However, in a statement late Friday, the president warned that he is prepared to reimpose and even expand those tariffs, saying the new measures would take effect on November 1 “or sooner” if China retaliates.
Trump also revealed that the US will introduce export controls on all critical software, further tightening economic measures against Beijing.