Trump warns of imposing 100% tariff on 'aggressive' China

Donald Trump announced on Friday that the US would impose a 100% tariff on imports from China, citing aggressive trade behavior by Beijing. The additional tariffs are set to begin on 1 November. In response to China's export controls on rare earths and critical software, Trump stated that the US would reciprocate with tariffs and export controls. He expressed disbelief at China's actions and indicated that the US would take necessary measures. Trump also mentioned canceling a scheduled meeting with Chinese leader Xi Jinping during his upcoming trip to South Korea. The move marks a significant escalation in tensions between the two countries, raising concerns about the global economy's stability.

The announcement led to Wall Street's worst day since April, with the S&P 500 falling 2.7% due to fears about US-China relations. China's recent restrictions on rare earths, requiring special approval for their export, further strained the already tense relationship between the two economic powerhouses. The situation signals a major rift in US-China relations, impacting the world's largest factory and consumer markets.