TL;DR: President Trump announced a 100% tariff on all Chinese imports starting Nov. 1, 2025, and export controls on U.S. critical software. The move, in response to China's rare earth export restrictions, caused a $1.65 trillion U.S. market crash and a $250 billion crypto wipeout. Trump canceled talks with Xi Jinping, escalating the trade war.
Trade Actions Announced
- President Donald Trump announced a 100% tariff on all Chinese imports, effective November 1, 2025, in response to China’s planned export controls on rare earths and other critical materials.
- Trump also said the U.S. would impose export controls on all U.S. made critical software, beginning the same day.
- Trump posted:
- He called China’s planned restrictions a
“Starting November 1st, 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 1st, we will impose Export Controls on any and all critical software.”
“moral disgrace in dealing with other Nations.”
Diplomatic Breakdown
- Trump canceled a planned meeting with Chinese President Xi Jinping at APEC in South Korea.
- Trump stated he had not spoken to Xi, saying there was
“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” Trump said.“They [China] are becoming very hostile... even if it’s not manufactured in China.”
“no reason to do so.”
Market Impact
- The announcement caused a $1.65 trillion drop in U.S. stock market value, the largest single-day loss since April.
- The Dow Jones fell over 1,500 points, S&P 500 dropped 2.7%, and the Nasdaq fell over 3.5%, entering correction territory.
- Roughly six out of seven S&P 500 stocks declined, affecting major tech firms and smaller companies alike.
Cryptocurrency Crash
- The crypto market lost $250 billion in value in one day.
- Bitcoin fell below $110,000, losing over 10%; Ethereum dropped 12%; some tokens lost up to 30%.
- $9.4 billion in positions were liquidated, the largest single-day liquidation event ever recorded.
Global and Economic Fallout
- The tariffs are expected to disrupt U.S. supply chains, especially in electronics, automotive, defense, and semiconductors.
- China has reportedly launched antitrust probes against U.S. tech firms and increased inspections on American AI chips.
- The breakdown in U.S.-China relations is likely to impact global economic growth, raising uncertainty and costs for multinational businesses.