In the latest escalation of US-China trade tensions, President Donald Trump announced the imposition of an additional 100% tariff on China, alongside export controls on “any and all critical software” starting November 1, 2025, or earlier depending on China’s actions.

Trump stated on social media that due to China’s “unprecedented hostile stance,” the US will impose a 100% tariff on China in addition to current tariffs, starting November 1, 2025 (or earlier). On the same date, export controls will be applied to all critical software.

This announcement came hours after Trump threatened to cancel a planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation forum in South Korea, saying he “sees no reason” to meet Xi.

The tariffs would raise duties on Chinese goods to 130%, approaching the 145% level imposed earlier this year before a trade truce. Both countries have recently taken steps to restrict technology and material flows ahead of the scheduled leaders’ meeting later this month.

China has recently imposed new tariffs on US ships at its ports and launched an antitrust investigation against Qualcomm, following new measures to restrict the flow of rare earth metals essential for many consumer products.

The Chinese Ministry of Commerce announced that foreign exporters of goods containing even small amounts of certain rare earth metals must obtain export licenses, citing national security concerns. Additional export controls will apply to equipment and technologies used in processing these metals and manufacturing magnets.

Trump’s statements rattled global markets on Friday, causing stocks, cryptocurrencies, and commodity prices to plunge. The S&P 500 fell 2.7%, marking its worst daily loss since April, while the Nasdaq 100 dropped 3.5%.

Cryptocurrencies gave up early gains, with Bitcoin dropping 5.6% to $114,341.45 and Ethereum falling 11% to $3,870. Commodity prices including copper, soybeans, wheat, and cotton also declined.

Oil prices extended losses, with December Brent crude futures down 3.8% to $62.73 per barrel and November West Texas Intermediate crude down 4.2% to $58.90.