In a major escalation of trade tensions, U.S. President Donald Trump announced on social media on October 10 that the United States will impose a 100% tariff on all Chinese goods starting November 1, 2025. The announcement also included export controls on all key software technologies.
According to President Trump, the decision is a direct response to China’s announcement on October 9 to impose export restrictions on rare earth materials, which are essential for many high-tech industries.
The market reaction was immediate and dramatic. The S&P 500 Index plunged 3.5% following the announcement, wiping out more than $2.5 trillion in market value within just six hours. Analysts warn that this move could trigger a new wave of global trade disruptions and significantly impact supply chains worldwide.
This latest development marks a major turning point in U.S.–China trade relations and could have far-reaching consequences for businesses across industries. Companies involved in manufacturing, technology, logistics, and international trade are urged to closely monitor the situation and prepare for potential policy changes ahead of the November deadline.
