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Trump Announces 100% Tariffs on China as Beijing Tightens Rare-Earth Controls

Beijing’s extraterritorial licensing paired with sector bans raises supply‑chain risks, casting doubt on a planned XiTrump meeting.

Overview

  • China’s new regime covers raw rare earths, processing know‑how, software and technical documentation, and restricts Chinese nationals from providing significant overseas assistance without approval.
  • Licences can be required for goods made outside China if they contain Chinese rare earths or used Chinese processing technologies, in some cases triggered at as little as 0.1% of a product’s value.
  • Exports to militaries are generally denied and certain semiconductor users face curbs, while Beijing expanded controlled materials and added about 14 mostly US companies to a sanctions list.
  • President Trump said an additional 100% tariff on Chinese imports will take effect by November 1 and announced forthcoming export controls on critical software, after questioning his APEC meeting with Xi.
  • Stocks fell on the escalation, with the Nasdaq down 3.56% and the S&P 500 off 2.7%, as European industry warned of disruptions after months of scarce export approvals and earlier production stoppages.