President Donald Trump isn't messing around when it comes to using tariffs -- both for leveraging economic trade and punishing nations that believe they can get one over on the United States.
According to Breitbart, President Trump sent shockwaves through the markets this week when he announced an added 100% tariff on Chinese imported goods after the communist nation announced a restriction on rare earth mineral exports.
The news of the new tariffs sent the markets into spiral mode, with most major markets taking a sharp dip given the gravity of the level of tariffs Trump said he'll slap on China on November 1.
The president's announcement was a direct response to China restricting rare earth minerals, which they happen to have a vast majority of control over on the global scale, giving the communist nation great leverage in the tech and AI fields that drive global trade.
China's announcement of stringent restrictions on rare earth mineral exports is a big blow not only to the United States but also to other Western countries that heavily depend on China's supply.
China has incredible leverage on the rare earth minerals market, as Breitbart noted:
China processes approximately 90 percent of the world’s rare earths, minerals critical for manufacturing semiconductors, electric vehicles, and military equipment. Its dominance in processing gives Beijing significant leverage over global technology supply chains.
The announcement also chilled relations, with an upcoming meeting between Trump and Chinese President Xi Jinping on the rocks.
Breitbart noted:
The measures would take effect Nov. 1, Trump said on Truth Social, potentially raising the average U.S. tariffs on many Chinese goods above 150 percent. Trump also said he saw no reason to proceed with a planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month.
Trump made the announcement on his Truth Social account, stirring immediate reactions in the market and the media.
“It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1st, 2025, impose large scale Export Controls on virtually every product they make, and some not even made by them," Trump wrote.
Users across social media offered mixed reactions to Trump's announcement.
"Investors should brace themselves. trump’s 100% tariff on china kicks in nov 1. this will fire up the trade war over their export controls. expect higher us costs and supply shake-ups. and most importantly, diversify wisely my friends," one X user wrote.
Another X user wrote, "We gave President @realDonaldTrump a mandate in 2024, which included ending decades of unfair trade. Call the ball, Mr. President. We back you 100%."
Only time will tell if it was a good call.
