Trump slaps 100% extra tariffs on China — Who will be impacted? How global markets reacted?

CHINA'S commerce ministry announced new controls on the export of rare-earth technologies and items on Thursday, tightening regulations on a key industry that supplies most countries with critical materials.

China is a leading producer and exporter of rare-earth minerals, which are used to make the magnets crucial to the auto, electronics and defence industries.

China's rare earth decision has triggered panic in the US amid its already-straining relationship with Beijing, with President Donald Trump imposing additional tariffs on the country despite cracking a trade deal earlier this year.

Here are all your questions answered on the latest Trump tariffs on China and Beijing's decision to put curbs on rare earth exports.

Q: How much tariff has Trump put on China?

A: Donald Trump has imposed an additional 100% tariff on China as a financial countermeasure for its rare earth restrictions. This is over and above all existing tariffs China is paying.

Q: What is the US tariff on China now?

A: The US tariff on China now stands at 130%. All Chinese exports to the US will face this tariff. The decision comes despite US and China struck a trade deal earlier this year.

Q: When are the latest Trump tariffs on China kicking in?

A: The latest US tariffs on China are scheduled to kick in from November 1, which is 22 days from when it was announced by Donald Trump.

Q: Why did Trump impose additional tariffs on China?

A: Donald Trump imposed the additional tariffs on China after Beijing put a host of new restrictions on rare earths. On Thursday, the Chinese government restricted access to rare earth minerals, requiring foreign companies to get special approval for shipping the metallic elements abroad. It also announced permitting requirements on exports of technologies used in the mining, smelting and recycling of rare earths, adding that any export requests for products used in military goods would be rejected.

Q: What did Donald Trump say about the tariffs?

A: In a post on Truth Social on Friday (local time), the US President said, “Based on the fact that China has taken this unprecedented position, and speaking only for the USA, and not other Nations who were similarly threatened, starting November 1, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying. Also on November 1, we will impose Export Controls on any critical software.”

Q: Will US roll back tariffs if China decides to lift rare earth curbs?

A: On being asked about whether the US will revoke the additional tariffs on China if the latter rolls back the restrictions, Trump said, “We'll have to see what happens. That's why I made it November 1.”

Q: Which sectors will be impacted due to the tariffs?

A: The US depends on China for hundreds of billions of dollars worth of goods. In particular, electronics, apparel and furniture are among the top sectors that are likely to be affected due to the tariffs.

Q: Will India be impacted?

A: India is unlikely to be directly impacted due to the Trump tariffs in China.

Q: What will be costlier and what will be cheaper?

If companies pass on the additional costs of importing Chinese goods to the US, electronics, apparel and furniture items are likely to get costlier.