The U.S. has warned that sweeping new tariffs on Chinese imports could take effect as early as November 1, depending on Beijing’s next move in a growing dispute over rare earths. U.S. Trade Representative Jamieson Greer said “a lot depends on what the Chinese do,” after China announced strict new export controls last week that could disrupt U.S. defense, technology, semiconductor and automobile industries.
President Donald Trump has threatened 100% tariffs in response, a move analysts say could effectively shut down trade between the world’s two largest economies. While Trump sought to calm markets on Sunday by saying ties with China “will all be fine,” he reignited concerns with fresh accusations of economic hostility.
The restrictions came ahead of a planned meeting between Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in Seoul later this month. Greer said the talks are still scheduled but may depend on how events unfold. Senior U.S. and Chinese officials met in Washington on Monday to discuss the issue.
Rare earths are critical to advanced industries, used in magnets for weapons platforms, electric vehicles and semiconductors. China controls about 60% of global mining and over 90% of refining, while the U.S. depends on China for around 70% of its imports.
The standoff shook Wall Street late last week, with U.S. stocks erasing about $2 trillion in value after Trump raised the tariff threat. Markets have steadied since, but volatility remains elevated as investors weigh the risk of a deeper rupture in U.S.–China trade.
