Wall Street crashed on Friday after President p Trump announced a 100% tariff on Chinese goods and export controls on critical software.
US stock markets saw heavy losses on Friday after President Donald Trump announced a 100 percent tariff on Chinese goods and export controls on critical software. The move has raised worries that the US and China could start a new trade war.
Trump sets new tariffs and export controls
President Trump posted on Truth Social that the tariffs will take effect on November 1, 2025, or sooner depending on China’s actions. “Based on the fact that China has taken this unprecedented position, and speaking only for the USA… the United States of America will impose a Tariff of 100 per cent on China, over and above any Tariff that they are currently paying. Also on November 1, we will impose Export Controls on any and all critical software,” Trump wrote.
Earlier on Friday, Trump accused China of taking “an extraordinarily aggressive position on trade” by sending “an extremely hostile letter to the world.” He also said there was “no reason to meet” withChinese President Xi Jinping after Beijing introduced new export controls on rare earth elements.
“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. This affects ALL Countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations,” Trump said.
China controls much of the global supply of rare earth minerals used in electronics, electric vehicles, and defense technology. The country has now added five new elements to its restricted list: holmium, erbium, thulium, europium, and ytterbium. With this, the total number of restricted rare earth stands at 12 out of 17. China now requires export licences not only for the minerals themselves but also for technologies used in “mining, smelting, and magnet production.”
The key concern revolving this development is that these moves could disrupt global supply chains and disturb the technology industry. Experts warn of slower economic growth, market volatility, and uncertainty for businesses and investors worldwide.
