U.S. President Donald Trump has reignited trade tensions with the Chinese mainland, announcing plans to impose 100% tariffs on Chinese exports and export controls on critical software starting November 1, 2025. The move comes in response to recent export restrictions imposed by Beijing, further destabilizing relations between the world's two largest economies.
Escalating Trade Measures
In a Truth Social post on Friday, Trump declared the tariffs would apply to all Chinese goods "over and above any tariff that they are currently paying," while export controls would target "any and all critical software." The announcement follows months of relative calm after both sides agreed to reduce tariffs earlier this year, with U.S. duties dropping from 145% to 30% and Chinese tariffs on American products falling from 125% to 10%.
Market Reactions and Historical Context
Global markets reacted sharply to the news, with Asian stock indices and tech shares experiencing volatility. The U.S. and Chinese mainland had extended their trade truce twice since August, but Trump's latest move signals a return to aggressive posturing. Analysts warn the 100% tariff rate—if implemented—could disrupt supply chains and consumer prices worldwide.
Tech Sector in the Crosshairs
The proposed software export controls align with ongoing U.S. efforts to limit the Chinese mainland's access to advanced semiconductors, critical for AI development. A recent U.S. House committee report urged broader bans on chipmaking tool sales, reflecting a strategic push to curb technological advancements. Beijing has repeatedly criticized such measures as violations of free trade principles.
Beijing's Response
Chinese officials have yet to issue an official statement but have historically condemned unilateral trade restrictions. The escalation comes amid heightened competition in emerging technologies, with both nations vying for dominance in AI, quantum computing, and semiconductor manufacturing.
