Trump to impose additional 100% tariff on goods from China

US President Donald Trump has reacted angrily to China’s introduction of large-scale export controls, which primarily concern rare earth minerals, but also extend to many other goods.

According to the BBC, the Republican complained that such actions are “unheard of and shameful”, that China is “behaving extremely hostilely and trying to hold the world hostage”, and that the meeting with Xi Jinping scheduled for the fall “no longer makes sense”.

From November 1, Trump threatens to introduce a 100% tariff on Chinese goods on top of existing customs rates, as well as to carry out export controls on all key software.

The news instantly collapsed US financial markets by almost 3%, which was the biggest drop since April. The cryptocurrency market reacted extremely painfully, falling in some places by tens of percent.

Analysts at UkrAgroConsult note that the new tariffs are unlikely to improve the competitiveness of American exporters, including soybean producers. Due to the escalation of trade tensions, China, which was previously the main buyer of American soybeans, is likely to continue diversifying imports, increasing purchases from Brazil and Argentina. This calls into question the prospects for sales of the new US crop on the world market.

Tags: China, USA, duties