Overview

• The 100% levy is set to take effect on November 1, or sooner depending on any further Chinese actions, and it applies on top of existing tariffs.
• Parallel export controls will restrict shipments of all U.S.-made “critical software” beginning the same day.
• President Trump canceled his planned late-October APEC meeting with China’s Xi Jinping in South Korea.
• Financial markets slid on the announcement as investors rotated to Treasuries, with the Dow down about 1.9%, the Nasdaq off 3.6%, the S&P 500 down 2.7%, the dollar weaker, gold above $4,000 an ounce, and oil prices lower.
• China earlier expanded rare-earth curbs by adding five elements and heightening scrutiny for semiconductor users, a significant move given its control of over 90% of global processed rare earths and rare-earth magnets.