In the Asia-Pacific region, the value of major stock exchanges fell due to Trump’s threat to impose triple-digit tariffs on Chinese imports. China holds reserves of strategically important rare minerals, which also underpin its global dominance. Although trade negotiations between the two countries had made progress over the summer, Beijing’s decision to tighten export controls on these minerals was prompted by the US decision to implement new export restrictions against China.
The new trade restrictions imposed by China, which will take effect in November, will impact the economies of East Asian countries, particularly Japan, South Korea, and Taiwan. Each of these countries plays a fundamental role in the production of cutting-edge artificial intelligence and technology products. Washington actively uses economic pressure as a lever of geopolitical influence. Accordingly, in response to Beijing, Trump’s decision will impose an additional 100 percent tariff on Chinese goods, raising the total duty to 130 percent. Effectively, the US is declaring a trade embargo on China, as Chinese goods will be unable to enter the American market.
Amid prolonged trade tensions, US stock exchanges were also affected. After the S&P 500 and Nasdaq experienced their sharpest declines, Trump wrote on Trust Social that the US “wants to help China, not hurt it.” “Don’t worry about China, it will be all fine!” Following Trump’s comments, the US stock market improved on Sunday evening.
On Sunday, Beijing warned the United States. According to a statement released by the Ministry of Commerce, China’s position remains unchanged: “We do not want a tariff war, but we are not afraid of it either”.
The next wave of counter-response trade restrictions will erase the progress achieved during the months of meetings between Chinese and US officials. At this time, it is unclear whether Trump will actually implement the tariff threat by November 1 or if the situation will be resolved.
On Sunday, speaking to journalists aboard Air Force 1, Trump said, “Let’s see what happens”, when asked about the November 1 deadline. In the Fox News program The Sunday Briefing, US Trade Representative jamieson greer said that the United States was unaware of China’s motives and did not expect the export restrictions, although Chinese officials stated that regional and national-level notifications had been made.
At the same time, Vice President JD Vance urged China to “choose the path of reason,” while emphasizing that the US holds “far more cards” if Beijing chooses to respond aggressively. As a result, a counter-response is likely, making it much harder for the two countries to find common ground and maintain economic stability.
