Trump ratchets up US-China trade war, promising new tariffs
Summary
US President Donald Trump escalates the US-China trade war by announcing 100% tariffs on Chinese exports and new export controls on critical software, reacting to China's rare earth export restrictions and casting doubt on a planned meeting with President Xi Jinping.
Key Points
- US President Donald Trump announced new 100% tariffs on China's exports to the US in response to China's expansion of rare earth element export controls.
- Trump imposed new export controls on critical software shipments to China, threatening additional controls on airplanes and parts.
- The announcement threatens the previously planned Trump-Xi meeting at the Asia-Pacific Economic Cooperation forum in South Korea.
- Markets reacted negatively to the trade escalation, with the S&P 500 dropping over 2% and investors moving to safe-haven assets.
