The simmering trade and technology rivalry between the United States and China escalated dramatically, with both nations announcing aggressive new measures that threaten to plunge the global economy into a full-blown trade war. China's Ministry of Commerce (MOFCOM) unveiled a series of sweeping export restrictions on a range of critical materials and technologies, including certain rare earth minerals, lithium-ion batteries, and synthetic graphite anodes. The U.S. response was swift and severe. President Donald Trump announced via social media that the U.S. would impose a new 100% tariff on all imports from China, "over and above any Tariff that they are currently paying," effective November 1. The president also declared that the U.S. would implement export controls on "any and all critical software" on the same date.
The tit-for-tat announcements have sent shockwaves through global markets and supply chains. China's export controls target materials that are essential for a wide range of high-tech and green energy industries, from electric vehicles and smartphones to advanced defense systems. The U.S. threat of a 100% blanket tariff represents an unprecedented escalation. If implemented, it would effectively make most Chinese goods prohibitively expensive for American consumers and businesses, forcing a massive and chaotic decoupling of the world's two largest economies. The situation remains volatile, with the global economy now bracing for the potential impact of a full-scale trade conflict that could dwarf previous disputes.
Source: Economic Times