In recent years, China-US trade frictions have been boiling up again, the US side of the action is frequent, first to raise tariffs, but also directly acknowledged that the two countries are already fighting a trade war, and finally thrown out a common threat. Things are caused by China's strengthening of rare-earth export control, the United States felt it was in the neck, and began to react. On October 10, Trump posted on the social platform, saying that China sent a hostile letter, announcing that from November 1 to implement large-scale export controls on almost all products, affecting countries around the world. He felt this incident was not heard before, and decided that the United States from November 1 to impose a 100% tariff on Chinese goods, and will also implement export controls on all key software.
This 100% tariff is additional, which is piled up on the basis of existing tariffs, directly pushing trade barriers to a new height. At present, the average tariff of the United States on Chinese goods is around 55%, including the reciprocal tax rate of 10% and other tariffs of 20%. After this increase, the total tariff can soar to 155% or even higher, which is basically equal to the embargo level. The total amount of China's exports to the United States was hundreds of billions of dollars last year. This tax increase has a wide impact, ranging from consumer goods to industrial materials.
Immediately afterwards, on October 11, Trump continued to make harsh remarks, saying that China's restrictions on rare earth exports were a threat to the global supply chain. Rare earth is a key raw material for high-tech products. China's output accounts for the majority of the world. U.S. military and chip companies cannot do without this thing. China's Ministry of Commerce responded that these controls are for national security and consistent with international practice. It also said that the United States also engages in export controls in semiconductors and other fields, and the double standards are too obvious. Trump refused to give up, saying that China's failure to buy U.S. soybeans was economic hostility, and also considered cutting off imports of edible oil and other businesses from China. U.S. farmers had expected large orders from China, but orders are now turning to Brazil and Argentina, and U.S. soybean and corn exports have suffered. The trade war has escalated since the beginning of the year. In February, Trump linked tariffs to China's opioid issue, adding a tariff of 30%, and this time it increased 100%, pressing forward.
On October 13, the U.S. and China increased each other’s shipping charges, and from October 15, each other’s commercial vessels were charged higher port charges. This affected more than 80% of global trade shipping, and U.S. retailers and manufacturers said they could bear in the short term, but the ultimate cost would be transferred to consumers. The shipping industry was already messy, and Trump’s tariffs have put Asian imports under pressure, and the supply chain is now more messy. China’s Ministry of Transport says it’s a reciprocal response, and will not sit anyway. In the same week, U.S. lawmakers called for a wider ban on chip equipment for China, and the survey showed that Chinese chip traders bought $38 billion in high-end equipment last year. U.S. Trade Representative
On October 14, a spokesman for the Chinese Ministry of Commerce said that the U.S. threatened to threaten and would not succeed, and that rare-earth controls had informed the U.S. in advance, but the U.S. denied. China emphasized the position and did not want to fight a trade war but was not afraid to fight, if the U.S. increased tariffs, China would take corresponding measures. Trump's tariffs have caused the U.S. trade volume to decline, and in the seven months before 2025, the U.S. imported $194 billion from China, $45 billion less than in the same period last year. Trump telephoned with the president on September 19, saying progress on the TikTok agreement, and also plans to meet in South Korea at the end of October to discuss trade, illegal drugs and
On October 15, Trump bluntly stated at a press conference that China and the United States are already fighting a trade war. He responded to reporters 'questions and said that if a new agreement could not be reached, the trade war would continue. This is more direct than before. In the past, the United States did not admit that it was fighting a trade war. Now Trump handles trade and technology issues separately, imposing technological restrictions while trying to sign a major trade agreement. China says this is a double standard. On the same day, U.S. Treasury Secretary Scott Bessent said that 85 senators supported authorizing Trump to impose a 500% tariff on China in response to China buying oil from Russia. If this 500% tariff is implemented, it will be used to fund Ukraine and European countries will also work together. Bessent said that if China stops the new rules on rare earths, the United States may extend the tariff exemption period on China for more than three months. China and the United States have signed 90-day tariff truce agreements many times before, and the next deadline is November 10. Besent listed conditions: China liberalized the supply of rare earths, stopped importing energy from Russia, and repurchased U.S. agricultural products such as soybeans and corn.
China's Ministry of Foreign Affairs responded on October 16th, saying that rare earth export control is to maintain world peace and regional stability, fulfill international obligations and conform to international practices. China is willing to communicate with other countries and maintain the stability of the global industrial chain. But the United States still wants to force China to make concessions by adding chips. China accounts for more than half of the world's rare earth production, leading in purification and processing, and the United States cannot find a substitute in the short term. Trump's tariffs have raised the cost of American enterprises, and consumers have made things more expensive. China has reciprocally increased taxes on American agricultural products and energy, and has also turned to South America to buy soybeans. The order volume is not small. There is great internal pressure in the United States, farmers cannot sell goods, and corporate supply chains are broken. The United States relies on Chinese industrial products, such as home appliance parts and chemical products, which are only mass-produced in China in the world, and have advantages in quality and price. Higher tariffs, U.S. manufacturing may stop production.
On October 16, Besent continued to push for a 500% tariff, saying that 89 senators supported it, which was basically the level of unanimous Senate approval. This tariff is aimed at China buying Russian oil, and Trump wants to cut off China-Russia energy cooperation. Besent said that if the EU joins, tariff revenue will fund Ukraine. Trump said China's rare earth restrictions were a battle for economic survival. China hit back that the United States was stuck on the chip. Now it's rare earth turn. The Sino-US trade war has been fought since 2018 and escalated again in 2025. Trump signed an executive order to increase taxes on goods originating in China. Starting from February 4, all China imports will be subject to a 10% tariff. On February 27, he said that China tariffs will rise again. On September 9, Trump signed an order to increase taxes on China goods, including the originally exempted portion.
The market reaction was fierce, after Trump posted on October 10, the SIP 500 index fell by 2.7%, evaporated by $1.5 trillion. Nasdaq futures closure fell by 4.4%, the index fell by 1100 points. Global futures fell by 4-5%, the cryptocurrency market evaporated by 19 billion. Bitcoin fell by 2%, but later stabilized. Trump tariffs allowed U.S. state revenue to fall by more than 3%, and some states considered spending cuts. On October 19, Trump changed the currency, saying there were no 500% tariffs, and was negotiating a trade deal. This news rebounded the market, Bitcoin rose by 2% to $10.75 million, and SIP like SOL rose by 3%. Opening interests of $15 trillion, emotions turned from panic and greed. Trump said the tariff cancellation was an economic benefit,