Trump slaps 130% tariffs on China as trade war explodes again

International

THE global trade war is roaring back.

President Donald Trump declared Friday that the United States will impose sweeping new tariffs on China, escalating a conflict that had appeared to ease just months ago.

Markets reacted immediately, signaling deepening uncertainty for businesses and investors.

Trump announced he will impose an additional 100% tariff on Chinese goods, on top of the 30% already in place, starting November 1 or sooner.

“The United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying,” he wrote in a post on Truth Social Friday afternoon, as quoted by CNN.

He also said that export controls would apply to all critical software beginning November 1.

The move comes after China tightened export controls on rare earth materials, which are essential for electronics production.

Trump’s announcement also casts doubt on a planned meeting with Chinese President Xi Jinping in South Korea later this month, which now appears unlikely to take place.

Markets responded sharply: the Dow Jones Industrial Average fell 878 points, or 1.9%, the S&P 500 dropped 2.7%, and the Nasdaq tumbled 3.5%.

Investors drew comparisons to last spring, when tariffs on Chinese goods surged to a record 145%, rattling global markets. While Trump has not always followed through on threats, the escalation has increased concern for investors, businesses, and consumers alike.

The United States and China remain deeply interconnected as the world’s two largest economies.

Although Mexico has recently overtaken China as the largest source of U.S. imports, the United States still relies on China for hundreds of billions of dollars’ worth of goods, while China continues to be a major market for American exports.

Electronics, apparel, and furniture are among the top imports from China. Trump has repeatedly urged U.S. companies, especially in the technology sector, to bring production back home, though he has softened his stance in recent months after corporate leaders pledged hundreds of billions of dollars in domestic investment, even if most production continues overseas.

Past tariff policies illustrate the delicate balance in trade relations. After initially proposing a 145% tariff on Chinese goods, Trump later exempted electronics, reducing their tariffs to 20% in recognition of the economic strain such measures placed on U.S. businesses.

In May, both nations lowered tariffs in a reciprocal agreement. China reduced levies on American exports from 125% to 10%, and the United States cut rates from 145% to 30%. Stock markets in both countries rallied following the agreement.

Trump described China’s recent trade actions as sudden, though tensions have been escalating for months. (MyTVCebu)