The United States announced a sweeping escalation in its trade measures against China, with a new 100% tariff on all Chinese imports taking effect Nov. 1, along with export controls on critical software technologies.
The move, confirmed late Friday, comes in retaliation for Beijing’s newly announced export restrictions on rare earth minerals — key inputs in sectors such as defense, semiconductors, and electric vehicles. China produces about 70% of the world’s rare earth supply.
The tariff hike doubles down on existing U.S. trade actions, adding to levies already ranging between 7.5% and 50% on a wide range of Chinese goods, from consumer electronics to steel and aluminum. Analysts estimate the average effective tariff rate on Chinese imports will now exceed 40%, a level not seen in decades.
The new export controls will target “any and all critical software,” the administration said, aiming to curb technology transfers tied to sensitive national security applications.
The announcement also raises uncertainty ahead of the upcoming Asia-Pacific Economic Cooperation summit in South Korea, where a potential meeting between U.S. and Chinese leaders had been expected.
The measures mark one of the sharpest escalations yet in the ongoing U.S.-China trade dispute, signaling that global supply chains in manufacturing, technology, and critical materials could face renewed disruptions heading into 2026.
