The latest development in US-China relations: President Trump has unveiled a unilateral 100% tariff on all imports from China, effective November 1, 2025. This dramatic move comes directly in response to China’s newly enacted export restrictions on rare earths and associated technologies, with the stated US goal of countering Beijing’s leverage over essential minerals.

Rare earths—vital for everything from smartphones and electric vehicles to national defense—are overwhelmingly sourced from China, which accounts for nearly 80% of global production. China’s decision to tighten export controls is expected to send ripples across global supply chains, with American industries poised to feel the pinch. Trump’s tariff hike aims both to retaliate and to incentivize reshoring or diversification of supply away from China.

Analysts suggest this escalation could trigger sharp price spikes and supply disruptions across sectors like chips, batteries, and advanced manufacturing, stoking fresh uncertainty in global markets. Companies dependent on rare earths and related components will need to closely track developments and review sourcing strategies to minimize vulnerability.

As tensions rise, investors and executives are urged to stay agile, monitoring policy shifts and market reactions. With trade barriers growing higher, the stakes are rising for economies, tech industries, and financial markets worldwide.